US stock futures were mostly flat on November 25, signaling a moment of pause on Wall Street after the market logged two consecutive strong gains to start the holiday-shortened week. Futures tied to the Dow Jones Industrial Average inched up 0.2%, while S&P 500 futures rose 0.3% and Nasdaq 100 futures gained 0.4%, indicating the careful optimism amongst investors.
The upbeat sentiment followed a robust session that saw the Dow rise 664 points, marking its third straight advance. Tech stocks added momentum to the broader rally, with Alphabet closing at record highs amid reports that Meta could adopt Google’s TPU chips as early as 2027. However, Nvidia slipped more than 2.5% as investors reassessed the chipmaker’s dominance in the AI hardware landscape.
During yesterday’s session, the Dow closed at 47,112.45, rising 1.43%, while the S&P 500 ended 0.91% higher at 6,765.88. The Nasdaq Composite advanced 0.67% to 23,025.59, staging an impressive rebound after all three indices briefly slipped into negative territory earlier in the day.
Rate Cut Expectations Drive Sentiment
Market focus continues to centre on the Federal Reserve’s upcoming monetary policy decision. According to the CME FedWatch tool, traders are pricing in an 83–85% likelihood of a quarter-point rate cut in December, a shift that has supported equity markets in recent sessions.
Expectations strengthened after reports revealed that Kevin Hassett, Director of the White House National Economic Council, is seen as the leading contender to replace Jerome Powell as the next Federal Reserve chair. Investors view Hassett as more inclined toward President Donald Trump’s preference for lower interest rates. Treasury Secretary Scott Bessent further fueled speculation, telling CNBC there is a “very good chance” Trump could make an announcement before Christmas.
Market Rally Helps Ease November Losses
The recent upswing in stocks has helped offset what was shaping up to be a challenging month for Wall Street. Concerns over stretched valuations—particularly among mega-cap tech stocks—have pressured markets in November. Despite this week’s gains, the S&P 500 and Dow remain slightly more than 1% lower for the month, while the Nasdaq has slipped nearly 3%.
The week’s economic and earnings calendar is lighter due to the Thanksgiving holiday, though Tuesday brought a wave of delayed data and strong results from major retailers. Deere & Company remains the biggest name yet to report before markets close early on Friday.
Gold Edges Higher as Dollar Weakens
In commodities, gold traded near $4,165 an ounce in Asian markets after closing little changed on Tuesday. A second straight day of weakness in the US dollar supported bullion prices by making the precious metal more affordable for overseas buyers.
Expectations of a December rate cut also boosted gold, as lower interest rates enhance the appeal of non-yielding assets. Recent economic data showed a modest rise in September retail sales and a sharp decline in consumer confidence—further evidence that US consumer momentum may be cooling.
Swaps markets now reflect more than an 80% probability of a quarter-point cut at the Fed’s December 9–10 meeting.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
