Markets climb as US data and policy boost investor confidence

Global stocks rose for a fourth consecutive session on Wednesday, supported by sustained expectations of a Federal Reserve (Fed) rate cut, while US markets prepared for Thursday’s Thanksgiving closure and a shortened trading day on Friday.

US equities continued their winning streak, with the S&P 500 up by 0.91%, the Nasdaq gaining 0.67% and the Dow Jones Futures adding around 119 points. Confidence in a potential December rate cut strengthened, with market odds now above 80%, bolstered by softer economic data and increasingly dovish commentary from Fed officials. Sentiment received an additional boost following Bloomberg reports that Kevin Hassett, Director of the White House National Economic Council, is emerging as the leading candidate for the next Fed chair — a prospect seen as consistent with President Donald Trump’s preference for lower interest rates.

On the corporate front, tech stocks outperformed, led by a 2% rebound in Nvidia. Microsoft rose 2.10%, Apple 0.80%, Amazon 0.70%, Meta 0.20%, Tesla 0.20%, and Broadcom 2.60%, while Alphabet slipped 1.40%.

European shares edged higher, underpinned by expectations of US rate cuts and tentative progress in Ukraine peace talks, while investors also awaited the UK budget announcement. The pan-European STOXX 600 rose 0.20% to 569.19 in early trade after posting its strongest gain in two weeks on Tuesday. Germany’s DAX strengthened 1.10% to 23 726, its highest level since mid-November and the FTSE 100 gained 0.81%.

Tech stocks were among the standout performers, with ASML up 5.70% and Infineon gaining 3.60%, despite ongoing uncertainty in the US AI sector, where Alphabet’s tensor processing units could challenge Nvidia in the datacentre market. Banking stocks also advanced, supported by another positive session for Eurozone bonds, with Santander, BBVA, Intesa Sanpaolo, and ING all rising more than 1.50%.

Asian markets were mostly higher, buoyed by Wall Street’s rebound and expectations of the US rate cut next month, which lifted risk appetite across the region. The Hang Seng rose around 0.13% and Japan’s Nikkei gained 1.85%, while the Shanghai Composite slipped 0.18%. Tech and AI stocks led gains in Hong Kong and on the mainland, with Xiaomi climbing roughly 5% following founder share purchases and a renewed buyback programme that boosted investor confidence. Sentiment towards China was further supported by a call between Presidents Donald Trump and Xi, which suggested improving Sino-US relations, alongside expectations that the People’s Bank of China’s proposed ¥1 trillion medium-term lending facility would inject additional liquidity into the system.

Locally, equities closed higher, with the All Share Index adding 1 566.45 points, a 1.42% gain, while the JSE Top 40 rose 1.41%. The JSE Resource 10 led the day with a 2.83% jump and the Financial 15 also advanced, closing 1.34% higher. The rand strengthened, trading 0.53% firmer against the US dollar at 17.12 by 19h33 SAST, while also gaining ground against the pound and euro. Investors will be watching the Producer Price Index (PPI) for signals of potential inflationary trends.

Commodities were mixed, with metals performing strongly: gold rose 0.93% and silver surged 3.12% per ounce. By contrast, Brent crude fell 0.13%, trading at $62.40 per barrel, while US crude futures remained little changed around $58 per barrel, staying near one-month lows as expectations of rising supply weighed on prices.