US Markets Rally on Early Thanksgiving Celebration

Thanksgiving fell on Thursday, but investors were already feasting on gains. The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite each posted a fourth consecutive day of advances.

Oracle shares, which have been wobbling since a sharp rally in September, jumped about 4% after Deutsche Bank called the recent pull‑back “an attractive entry point when you look at the business in totality.” The rally extended to other AI‑heavy names, including Nvidia and Microsoft, which both posted gains.

“Thanksgiving week is traditionally a strong week for equities. The market sentiment is upbeat,” said Eric Diton, president and managing director at The Wealth Alliance.

What could happen after the holiday? Futures now show roughly an 85% probability that the Federal Reserve will trim rates by a quarter‑point in December. “If the Fed disappoints, we could see a sell‑off,” Diton warned, though he added, “I don’t see that happening.”

Bank of America economist Aditya Bhave noted that if Treasury Secretary Kevin Hassett were to replace Jerome Powell as Fed chair, the policy outlook could turn even more accommodative, further supporting equities.

Analysts are already penciling in lofty targets for the S&P 500. CFRA’s Sam Stovall projects the index near 7,400 by the end of 2026, while JPMorgan’s strategists argue the market could test the 8,000 mark if certain catalysts materialize. Looser monetary policy, they argue, remains the most powerful engine for equity gains.

Investors have plenty to be thankful for in 2025 – and the outlook for 2026 looks equally optimistic.

Four straight days of broad‑based gains. The S&P 500, Dow and Nasdaq closed higher on Wednesday, buoyed by a rally in technology stocks such as Oracle and Nvidia. Europe’s Stoxx 600 rose 1.09%, while U.K. banks rallied after the treasury’s autumn budget was unveiled.

Apple may eclipse Samsung in smartphone shipments. Counterpoint Research expects Apple to ship roughly 243 million iPhones this year, overtaking Samsung’s projected 235 million units – the first time in 14 years the iPhone has out‑shipped its South‑Korean rival.

U.K. Autumn Budget delivers “stealth tax” relief. Finance Minister Rachel Reeves announced tax breaks for startup employees and investors and froze income‑tax thresholds, a move analysts say will preserve disposable income for many workers.

MIT study flags AI‑driven job displacement. A simulation of 151 million U.S. workers suggests AI could replace 11.7% of the labor force – about $1.2 trillion in wages – across finance, health care and professional services.

Can the S&P 500 reach 8,000? JPMorgan’s strategist projects a 10% rise to roughly 7,500 by the end of 2026, with upside potential to 8,000 if a series of favorable macro events unfold.