As Wall Street embraced the pre-Thanksgiving optimism, US stocks made gains on Wednesday, buoyed by a combination of factors ranging from declining oil prices to positive economic indicators. The Dow Jones Industrial Average rose 0.53%, closing at 35,272.77, with the S&P 500 not far behind, recording a 0.41% increase to 4,556.61. The Nasdaq Composite also joined the upward trend, climbing 0.46% to 14,265.86 at the closing bell. The positive sentiment was further fueled by a dip in weekly jobless claims, which fell by 24,000 to 209,000, indicating a potential strengthening of the labor market. However, the final reading of the University of Michigan consumer sentiment survey revealed a slight uptick in year-ahead inflation expectations to 4.5%. This modest increase had a ripple effect on bond yields, ticking slightly higher as the market anticipates potential Federal Reserve actions. Despite the positive market movements, oil prices experienced early-day turbulence, with West Texas Intermediate crude slipping 1.1% to $76.85 per barrel and Brent crude, the international benchmark, dipping 0.8% to $81.76. Meanwhile, gold prices faced a 0.6% decline, settling at $1,989.70 per ounce. As investors navigated through these fluctuations, Bitcoin rose 0.9% to $37,342.70. In the broader economic landscape, other noteworthy developments include gold prices approaching all-time highs, potentially reaching $2,500 per ounce, according to Fundstrat. Hedge funds, however, found themselves on the wrong side of the market, losing $43 billion in an attempt to short the market during a month where the S&P 500 eyes its best performance in over a year. Additionally, a surge in investor interest was observed in junk bonds, with corporate debt witnessing its most significant inflow in three years, signaling a risk-on sentiment among market participants. As markets prepare to close for Thanksgiving, attention remains on the evolving economic landscape and the interplay of factors shaping investor sentiment in the days ahead
“Thanksgiving Rally: US Stocks Surge Amid Economic Indicators, Oil Price Fluctuations, and Investor Dynamics”
