US midday market brief: Dow rallies over 400 points as Oracle’s AI boost propels S&P 500, Nasdaq higher
Wall Street extended its winning streak to four consecutive sessions on Wednesday, with the Dow Jones Industrial Average climbing over 400 points by midday and the S&P 500 and Nasdaq Composite both gaining ground.
The rally, driven by optimism over a potential Federal Reserve rate cut in December and renewed appetite for artificial intelligence stocks, found fresh fuel in strong earnings from Oracle and Dell Technologies.
Traders are pricing in an 83% probability of a December rate cut, underpinning risk sentiment as markets head into the holiday-shortened trading week.
The broad-based momentum reflects investor confidence that the AI narrative remains intact despite earlier concerns about slowing growth and competitive pressures.
Earnings beats from major technology firms continue to shift sentiment away from recession fears, with Dell’s record AI server demand providing particular encouragement for the infrastructure buildout that’s underpinning the sector’s comeback.
Oracle sparks tech gains, jobless data adds support
Oracle shares climbed 4-5% on Wednesday after strategically positioning itself at the forefront of the AI infrastructure race.
The software giant announced major partnerships with Nvidia and AMD to develop AI supercomputers for national labs, underscoring its role as a critical enabler in the AI economy.
This move amplified broader tech enthusiasm, with Dell Technologies surging 6.7% after reporting record demand for AI servers and raising full-year guidance, a clear signal that corporate spending on artificial-intelligence infrastructure remains robust.
Sentiment received an additional boost from fresher labor-market data.
Initial jobless claims for the week ending November 22 fell to 216,000 from 222,000, beating economist expectations of 225,000 and signaling that layoffs are easing.
The softer labor reading, combined with earlier retail-sales misses and producer-price data that remained within expectations, has reinforced the case for a December Fed rate cut.
The 10-year Treasury yield edged up to 4.03%, while the 2-year yield rose to 3.49%, as market participants repositioned ahead of the central bank’s December meeting.
Nvidia also added 2.5%, recovering from earlier losses related to competition from Alphabet ‘s AI chips.
By midday, the tech-heavy Nasdaq 100 had posted a 1.1% gain, with all eleven S&P 500 sectors trading in positive territory, led by technology, materials, and consumer staples.
Retail trades strong, volatility fades
Consumer discretionary stocks also participated in the rally.
Urban Outfitters surged 11.7% after earnings that beat Wall Street expectations, while Robinhood jumped nearly 8% following its announcement of a joint venture with Susquehanna International Group to acquire LedgerX for prediction-markets trading.
Deere & Company, however, dropped nearly 4% after issuing a downbeat outlook, citing tariff pressures, a reminder that trade policy remains a headwind for some industrial sectors.
The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” extended its decline for a fourth straight session, falling more than 5% as risk-off sentiment faded.
This suggests institutional investors are increasingly comfortable rotating into equities and away from defensive positions.
The Nasdaq has gained more than 4% so far this holiday-shortened week, while the S&P 500 and Dow Jones Industrial Average are up 3.4% and 2.8%, respectively.
International markets tracked the rally, with Japan’s Nikkei 225 jumping 1.9%, Germany’s DAX gaining 0.7%, and France’s CAC 40 rising 0.6%, as major exporters and technology counters benefited from the synchronized optimism.
What to watch next: The US equity market will be closedon Thursday for Thanksgiving and operate on shortened hourson Friday, ending at 1 PM E.T.
Focus will shift to December Fed rate-cut odds as additional economic data arrives and corporate guidance updates shape expectations heading into 2026.
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