U.S. Equities Extend Four-Day Rally as Rate-Cut Expectations Strengthen Ahead of Thanksgiving

Market Overview

U.S. equities extended their four-day winning streak heading into Thanksgiving, supported primarily by tech stocks. Both the S&P 500 and the Nasdaq closed at two-week highs. Dell surged nearly 6% after raising its forward guidance, Broadcom jumped more than 3% to a record high, and the Nvidia supply-chain complex rebounded. In contrast, Alphabet pulled back, and U.S.-listed Chinese ADRs snapped their winning streak, with Alibaba and Baidu experiencing sudden intraday drops. In Europe, semiconductor giant ASML climbed nearly 6%.

On the macro front, the U.K.s fiscal budget drew significant attention as long-dated gilt yields plunged more than 10 basis points. U.S. 10-year Treasury yields also declined following fresh labor-market data, falling back below 4.0%. Strengthening expectations for rate cuts pushed the U.S. Dollar Index to a three-day decline, while the offshore Chinese yuan rallied to a 14-month high, briefly breaking below 7.07 in intraday trading.

Across other asset classes, cryptocurrencies rebounded, with Bitcoin rising nearly 5% to reclaim the $90,000 level. Commodities broadly advanced: crude oil bounced off a one-month low, and gold futures logged a four-day winning streak, reaching a near two-week high.

Hot Topics to Watch● Fed Beige Book Highlights a Growing Policy Dilemma

The Federal Reserves latest Beige Book indicates that the job market is softening due to the government shutdown and increased adoption of AI technologies. Meanwhile, rising tariffs and higher healthcare insurance costs have pushed business expenses higher, potentially worsening inflation concerns. Consumer spending is becoming increasingly K-shaped—high-income households remain resilient, while low- to middle-income consumers are “tightening their belts.”

With key economic data releases suspended during the recent government shutdown, this Beige Book may hold greater-than-usual weight for Fed policymakers.

● U.S. Initial Jobless Claims Fall to 216,000

For the week ending November 22, initial jobless claims dropped by 6,000 to 216,000, marking the lowest level since mid-April. While initial claims remain solid, continuing claims rose slightly to 1.96 million, suggesting the labor market is becoming more challenging for unemployed workers trying to re-enter the workforce.

Key Event to Watch (GMT+8)

20:30 — EU: ECB Releases Minutes of Its October Monetary Policy Meeting