Wall Street and global markets surged this week as investors cheered growing expectations that the U.S. Federal Reserve will cut interest rates in December, sending stocks, precious metals, and optimism higher ahead of the Thanksgiving holiday. The rally, which began in earnest late last week, accelerated on Wednesday, November 26, with technology shares, gold, and silver at the forefront of the action.
According to The Associated Press, the S&P 500 rose 0.5% in early trade, the Dow Jones Industrial Average gained 227 points, and the Nasdaq advanced 0.7%. The momentum continued throughout the day, with the S&P 500 eventually climbing 0.7%, marking its fourth consecutive session of gains after reclaiming its 50-day moving average—a key technical milestone that many traders watch closely. The Nasdaq 100 finished up 0.9%, buoyed by a rebound in heavyweight tech stocks.
Tech giants led the charge. Dell Technologies, for instance, jumped 2.3% after reporting record demand for its artificial intelligence servers—a sign that enthusiasm for AI remains strong despite recent worries over high valuations. Nvidia, the world’s most valuable chipmaker, added 2.5% after bouncing back from jitters about competition in the AI processor space. As Bloomberg noted, "Market sentiment around AI has also regained confidence. Following some positive company-specific news last week, including ongoing strength in revenue generation, as well as progress in AI model capabilities."
Retailers also had reason to celebrate. Urban Outfitters surged 11.7% after posting earnings that handily beat Wall Street forecasts, a bright spot in a sector that has faced its share of challenges lately. Not every company joined the party, though—Deere & Co. dropped nearly 4% after issuing a downbeat outlook, blaming tariff pressures for its caution.
Trading volume was lighter than usual, down about 11% from the 30-day average for the time of day, as markets headed into the Thanksgiving break. U.S. exchanges will be closed on Thursday, November 27, and operate on shortened hours Friday, November 28. The holiday-shortened week did little to dampen the bullish mood, however.
Bond markets reflected the shifting sentiment as well. The yield on the 10-year Treasury edged up to 4.03%, while the 2-year yield rose to 3.49%. These moves came as traders priced in nearly an 83% probability of a Fed rate cut next month, according to CME Group data. "A key source of support for markets has been greater confidence in an additional 25 basis point rate cut by the U.S. Federal Reserve at its next meeting on Dec. 10," Kathrin Forrest, equity investment director at Capital Group, told The Canadian Press.
North of the border, Canada’s main stock index finished nearly 280 points higher, with gains driven by the basic materials sector—especially precious metals like silver and gold. The S&P/TSX composite index rose 279.60 points to 31,180.25, and the TSX materials index jumped more than 5% over the past week. Year-to-date, the materials sector is up a staggering 90%, helping propel the overall TSX index to a 26% gain so far in 2025.
Precious metals were on a tear. Gold and silver futures advanced sharply on Wednesday, supported by firm global cues and the mounting conviction that a Fed rate cut is imminent. On the Multi Commodity Exchange (MCX), December gold contracts rose Rs 475, or 0.38%, to Rs 1.25 lakh per 10 grams, while silver for December delivery surged Rs 1,388, or 0.89%, to Rs 1.57 lakh per kilogram. Globally, Comex gold for December delivery climbed $28.20, or 0.68%, to $4,193.40 per ounce, and silver advanced 1.03% to $51.61 per ounce. The February gold contract in New York was up $25 at $4,202.30 an ounce.
Analysts attributed the rally to a combination of weakening U.S. economic data and dovish signals from Federal Reserve officials. Rahul Kalantri, Vice-President of Commodities at Mehta Equities, told Reuters, "Gold and silver prices jumped as delayed US economic data bolstered expectations of a December Fed rate cut." Jigar Trivedi, Senior Research Analyst at Reliance Securities, pointed out that September retail sales rose just 0.2% after a strong August, signaling slowing demand and reinforcing bets on monetary easing.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. and President of the India Bullion and Jewellers Association, summed up the mood: "The metals were dancing to the tunes of Fed rate cut bets," he said, noting that gold had risen to its highest levels in more than a week despite a strong dollar. According to the CME FedWatch Tool, investors now see an 81% chance of a December cut, up from 40% last week.
Looking ahead, the outlook for gold remains bullish, though with a note of caution. Axis Direct’s latest report expects the structural uptrend to continue into 2026 but warns of sharper volatility as policy decisions, geopolitics, and liquidity conditions shift. After soaring more than 60% in 2025—its best annual performance since 1979—gold is projected to reach Rs 1,40,000–Rs 1,45,000 per 10 grams by the end of 2026. Still, risks remain, including the possibility of a hawkish central bank pivot, a stronger dollar, weaker Chinese demand, and calmer geopolitics reducing safe-haven flows.
Meanwhile, global equity markets joined the rally. Germany’s DAX gained 0.7%, France’s CAC 40 rose 0.6%, and Japan’s Nikkei 225 jumped 1.9%, with major exporters and tech companies leading the way. The Canadian dollar also strengthened, trading at 71.13 U.S. cents compared to 70.90 cents the previous day, while crude oil prices edged higher, with the January contract up 70 cents to $58.65 per barrel.
Despite the euphoria, some caution lingers. The Federal Reserve faces a delicate balancing act: cutting rates too soon could reignite inflation, while holding steady might risk stalling the economy as the job market slows. As Forrest put it, "Lower interest rates are in general supportive of precious metals prices. You just reduce the opportunity cost essentially for holding those precious metals as an alternative store of value."
For now, though, investors seem content to ride the wave of optimism, at least through the Thanksgiving break. Whether the Fed delivers the widely anticipated rate cut in December—and whether that keeps the rally going into 2026—remains to be seen. But for this week, markets are celebrating, and that’s something traders and investors alike are thankful for.
