Global markets stretched higher for the fourth day in a row on Wednesday, lifted by sustained conviction that the US Federal Reserve is inching toward a rate trim. Across the Atlantic, sterling swayed sharply after Britain’s fiscal authority mistakenly unveiled fresh projections ahead of the nation’s budget unveiling, stirring momentary unrest.
On Wall Street, equities opened with renewed vigor. Nvidia (NVDA.O) reclaimed lost ground after stumbling in recent sessions, reasserting its dominance as a heavyweight in the growing AI sector. Investors poured back into the stock, helping buoy the wider market.
The upswing follows a rally sparked last Friday, when optimism surrounding a possible December rate reduction surged. The shift came on the heels of remarks from New York Fed President John Williams, who hinted that borrowing costs could ease sooner than anticipated—despite other officials maintaining a guarded stance. That momentum strengthened as San Francisco Fed President Mary Daly and Fed Governor Christopher Waller echoed support for a year-end cut.
Fresh labor data added fuel to the market’s buoyancy. Weekly jobless claims slid by 6,000, settling at 216,000 for the week ending November 22—its lowest watermark since April and below forecasts. This drop suggested a labor sector still steady, yet soft enough to offer policymakers room to maneuver.
Kim Forrest, chief investment officer at Bokeh Capital Partners, noted that the landscape remains fragile but manageable: the economy isn’t collapsing, she explained, yet it’s subdued enough to give the Fed space for further adjustments. Elevated unemployment figures still allow central bankers “headroom” to moderate rates.
By midday, the Dow Jones Industrial Average climbed 236.67 points to 47,349.12. The S&P 500 moved 35.19 points higher to 6,801.07, and the Nasdaq Composite advanced 128.11 points to 23,154.97. Market sentiment continued to favor a December cut, with the CME FedWatch Tool placing the likelihood of a 25-basis-point reduction at 82.9%—slightly below Tuesday’s reading yet far above last week’s probability.
With U.S. exchanges set to close Thursday for Thanksgiving and reopen in a shortened Friday session, global attention shifted overseas. MSCI’s worldwide equities barometer rose 0.78% to 998.82, extending a rare four-session winning streak. Europe’s STOXX 600 surged nearly 1%, poised for its best result in two weeks.
Currency markets experienced their own tremors. The dollar index slipped to 99.65, giving way to a firmer euro at $1.159. Sterling strengthened to $1.3223, though the pound ricocheted earlier in the day after the Office for Budget Responsibility prematurely released its Economic and Fiscal Outlook. In response, UK finance minister Rachel Reeves unveiled a tax-heavy budget—tightening levies on workers, savers, and investors to carve out more fiscal breathing room.
Ten-year gilt yields retreated to 4.424%, while the Japanese yen drifted to 156.48 per dollar. Sources indicated the Bank of Japan is quietly preparing markets for a potential rate increase as early as next month, possibly shifting its long-held strategy to reshape the yen’s trajectory.
In the U.S. bond realm, benchmark 10-year Treasury yields nudged to 4.017%, ending a multi-session slide. The move followed delayed government data showing a jump in orders for American-made capital goods in September—a sign of enduring industrial momentum despite recent disruptions.