The stock market witnessed volatility this week. Even though Nasdaq increased by 0.65% on Friday, closing at 23,365.69, it registered a monthly loss of nearly 2%, breaking its seven-month winning streak.
Thanksgiving week saw the S&P 500 and Dow also growing, by 0.54% and 0.61% respectively, pushing their levels to 6,849.09 and 47,716.42. The weekly period saw the Dow up more than 3%, the S&P 500 up almost 4% and Nasdaq jumped more than 4%. However, the S&P 500 fell 0.6% and Dow was roughly unchanged for the month.
In stocks, Super Micro Computer emerged as the top loser in the S&P 500, tumbling 35%, while Nvidia slipped 13%, and Coinbase fell 21%. Conversely, Microsoft and AMD performed well, serving as attractive bets for investors.
Predictions for 2026 have started coming from analysts. Deutsche Bank forecasts the S&P 500 to reach 8,000 by the end of 2026 while HSBC and JPMorgan see it around the 7,500 mark.
Despite November’s weak performance, the market hopes for a year-end rally as December generally proves to be a seasonally strong month. Investors are also keeping an eye on the Federal Reserve’s decision regarding an interest-rate cut next month.
This week, the stock market experienced its fourth consecutive day of gains. The Dow Jones Industrial Average increased by 314.67 points or 0.67% to end at 47,427.12. The S&P 500 ascended to 6,812.61, a rise of 0.69% while the Nasdaq Composite finished at 23,214.69, showing an increase of 0.82%.
Oracle, an Artificial Intelligence (AI) company, played a significant role in raising the broader market with its shares soaring by around 4%. This followed Deutsche Bank’s reaffirmation of its bullish stance on the firm. Nvidia shares also rebounded over 1% after a recent pullback, as did Microsoft shares which traded about 2% higher.
The Dow, Nasdaq, and S&P 500 are all set for their best week since the end of June. The S&P 500 is up over 3% to date this week, while Nasdaq and Dow have noted an increase of more than 4% and 2% respectively. Consequently, leading analysts believe that this could well prove to be the best stretch of the year for stocks, running from November to April.
As of Tuesday, stocks enjoyed a winning session despite volatile trading on the market. Despite tech heavyweight, Alphabet, reaching new record highs and Nvidia shedding more than 2.5%, investor confidence remained high. They await potential catalysts that could compel the Federal Reserve’s next interest rate move. Right now, traders are predicting over an 80% chance for a reduction of a quarter percentage point from the Fed in December.
However, November has proven a tough month for stocks. Despite this week’s gains, all three major averages are on track for a losing month due to concerns about high valuations draining momentum from some tech stocks. The S&P 500 and Dow are slightly down for the month, while the Nasdaq has dropped more than 2%.
The stock market will remain closed on Thursday for Thanksgiving and will open for a shortened session on Friday.
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