US equities rise before Thanksgiving fuelled by tech and energy sectors

U.S. equities displayed a modest uptick as the Thanksgiving holiday week commenced. The Dow Jones Industrial Average rose by 80 points, marking a 0.2 percent increase, while the S&P 500 added 0.3 percent and the Nasdaq Composite climbed 0.5 percent.

Positive start

Microsoft shares notably contributed to the positive momentum, with a nearly 1 percent gain, positioning the tech giant as the second-biggest gainer in the Dow following CEO Satya Nadella’s announcement about former OpenAI chief Sam Altman leading a new AI research team.

Sectoral leaders drive S&P 500 gains

The energy and tech sectors emerged as the primary gainers in the S&P 500, witnessing increases of 0.8 percent and 0.7 percent, respectively.

APA and Marathon Oil led the energy sector with gains of 1.7 percent and 1.6 percent, while in the tech domain, Palo Alto Networks surged by 2%, accompanied by a 1.2 percent increase in Intel’s value.

Market optimism

Despite the shortened trading week due to Thanksgiving, key catalysts loom on the horizon. Nvidia’s upcoming earnings report on Tuesday is a focal point, given its status as the year’s best-performing stock with over a 200 percent increase. Wall Street reflects recent positive trends, with the S&P 500 closing 2.2 percent higher and the Dow adding 1.9 percent, marking the first three-week streak for the indexes since July. Nasdaq Composite finished the week higher by 2.4 percent, achieving its best week since June. Market bulls remain optimistic, especially after cooler-than-expected U.S. inflation data calmed investors’ concerns and hinted at a possible halt in Federal Reserve interest rate hikes.

Outlook and investor confidence

As the week progresses, investors remain watchful of market dynamics, with Nvidia’s earnings and broader economic indicators shaping sentiment. Market stabilization is evident, reflecting increased confidence that the Federal Reserve may have concluded its interest rate adjustments. The anticipation of potential rate cuts has led to a more stabilized market over the past month and a half, according to Jamie Cox, managing partner at Harris Financial Group.

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