US stocks rose on Wednesday, setting up a fourth day win as investors welcomed rising odds of a December rate cut and showed a fresh appetite for Big Tech and risk assets heading into the holiday break. The Dow Jones Industrial Average jumped nearly 1%, adding more than 400 points, while the S&P 500 also rose 0.9%.
The Nasdaq Composite gained roughly 1%, extending Tuesday’s rebound as tech shares continued to recover from a recent pullback. Wednesday marks the final full session before Thanksgiving; markets close Thursday and trade on a shortened schedule Friday, shutting at 1 p.m. ET.
Market Movers:
- Urban Outfitters (URBN) +12.4%: Shares soared after the retailer reported record third-quarter sales and net income, powered by unexpectedly strong performance at both its namesake brand and Anthropologie. Digital channel growth and double-digit comparable gains across banners signaled continued momentum in consumer apparel spending.
- Autodesk (ADSK) +7.3%: Autodesk rallied after beating third-quarter expectations and issuing stronger revenue and earnings guidance for both Q4 and the full year. Growth was driven by robust demand in design software and broad double-digit expansion across every region.
- Dell Technologies (DELL) +2.1%: Dell climbed after raising its full-year sales outlook, citing surging demand for AI servers and improved PC revenue. The company now expects $25 billion in AI server sales, sharply above earlier projections.
- Nutanix (NTNX) –18%: Nutanix plunged after offering weaker revenue guidance tied to timing shifts in contract recognition, despite its CFO stating underlying demand remains stable. The lowered full-year outlook overshadowed improved free cash flow expectations.
- Zscaler (ZS) –11%: The cybersecurity firm fell after reporting losses that weighed on otherwise strong results and guidance. While revenue projections topped expectations, the latest operating margin figures raised fresh concerns about cost pressures.
- Workday (WDAY) –8.2%: Despite beating consensus forecasts and boosting its full-year subscription revenue outlook, Workday slipped as investors focused on cautious operating margin projections. The company emphasized a steady enterprise software pipeline heading into 2026.
- Ambarella (AMBA) –14%: Shares declined even after topping quarterly estimates, as investors reacted to mixed analyst reviews and slower-than-expected growth in some IoT verticals. Morgan Stanley reiterated its overweight rating, citing long-term opportunities in edge AI.
Fed Watch
Investors turned their attention to the Federal Reserve’s Beige Book, released Wednesday, offering a region-by-region snapshot of economic activity during the shutdown-stricken data gap. The report will be dissected for signs of weakening hiring, consumer demand shifts, and regional wage pressures before next month’s policy decision.
Meanwhile, jobless claims dropped to their lowest level since April, suggesting fewer layoffs even as major firms announced workforce cuts in recent weeks. The combination of steadier employment and softening inflation has pushed the market to price in more than an 80% probability of a rate cut next month.
Oil Prices Slide on Oversupply Concerns
Oil futures stabilized midday after tumbling earlier in the week on forecasts from JPMorgan and Goldman Sachs calling for steep oversupply through 2026. Analysts warned that supply continues to outpace demand globally, regardless of geopolitical disruptions or seasonal shifts. Brent crude and WTI both hover near their lowest prices of the year, raising concerns for energy producers but offering welcome relief for transportation and manufacturing sectors sensitive to fuel costs.
AI Trade Rebalances as Nvidia Recovers, Alphabet Eases
Nvidia shares bounced modestly after Tuesday’s sell-off triggered by reports of a Google–Meta AI chip partnership. Analysts reiterated that rising competition reflects demand expansion, not diminishing market share. Alphabet eased slightly after nearing a $4 trillion valuation. Tech leadership remains volatile as AI investment strategies shift among hyperscalers, but investors continue to show preference for profitable chipmakers and cloud firms with scalable AI infrastructure.
Looking Ahead
Markets enter the holiday weekend riding strong momentum, but thin liquidity and data uncertainty could increase volatility next week. With critical economic releases still delayed and Fed officials offering little clarity on their priorities, traders will look to early December indicators to confirm whether a cut is imminent. If consumer spending holds and inflation cools further, the year-end rally has room to run. If high valuations collide with patchy data, the holiday cheer could fade quickly.
