Opening Bell - Morning Commentary

AI Stocks and Rate Cut Bets Power Wall Street's Pre-Holiday Momentum

Wall Street extended its rally on Wednesday as revived tech strength and the increasing probability of a December interest rate cut from the U.S. Federal Reserve put investors in a buying mood the day before the Thanksgiving holiday.

All three major U.S. stock indexes notched their fourth consecutive daily gains, as investors looked past concerns about inflated tech valuations that dragged all three into losses last week.

Alphabet continues to trade near record highs as investors position for its AI chips and Gemini platform, while Nvidia rebounded around 2% after recent scrutiny over its financing practices. Dell, Oracle and other AI-levered names rose on signs of strong server and cloud demand.

Dell Technologies jumped 5.8% in the wake of its better-than-expected earnings and upbeat forecast.

The markets have recently benefited from renewed optimism about the outlook for interest rates following dovish comments from some Federal Reserve officials.

Financial markets are currently pricing in an 84.9% probability that the central bank will reduce its key Fed funds target rate by 25 basis points at the conclusion of its December policy meeting.

The US stock market will be closed for the Thanksgiving holiday today. Wall Street is scheduled to reopen on Friday, 28 November 2025, for a shortened trading session due to Black Friday.

Asian stocks rose on Thursday, and the dollar was soft on growing expectations of an interest rate cut from the Federal Reserve next month, while the yen stayed in the spotlight, with traders weighing the prospect of a rate hike before the end of the year.

Gold is hovering around $4,160 per ounce after climbing nearly 1% Wednesday, supported by a softer dollar and expectations of easier Fed policy. Looser policy reduces the opportunity cost of holding non-yielding bullion.

Firm gains across US and Asian markets, backed by softer US retail sales and producer prices and expectations of a December Fed cut, created a supportive backdrop for Indian equities and helped trigger short-covering.

Indian markets broke their three-session losing streak with a strong 320-point rally to close at 26,205, marking their second-highest close on record.

Nifty found support near its 20-day exponential moving average (20 DEMA) and resumed its primary uptrend after a brief correction.

Above 26,277, the next resistance for Nifty comes in at the psychologically crucial round number mark of 26,500. On the downside, immediate support has now shifted higher to the 26,000–26,050 zone, which is likely to act as a near-term demand area on any pullback.

Indian markets are poised to open higher today on positive global cues.