US market rebound continues for fourth day in a row ahead of Thanksgiving holiday

Benchmark indices on Wall Street continued to rally for the fourth day running led by a continued rebound in tech stocks, albeit on lower volumes ahead of the thanksgiving holiday.

The Dow Jones gained another 300 points, taking the four-day upmove to nearly 1,700 points, and recovering nearly two-thirds of the recent sell-off. The S&P 500 and the Nasdaq, aided by Oracle, Microsoft and a small rebound in Nvidia, ended with gains of 0.7% and 0.8% respectively.

Brokerages have begun to place bullish bets on the S&P 500 for the end of 2026. Deutsche Bank sees the index at 8,000 by the end of next year, while JPMorgan and Societe Generale gave slightly conservative targets of 7,500 and 7,300 respectively for the next 12 months. The index closed at 6,812 on Wednesday.

Equity markets on Wall Street have staged a rebound after last week's sell-off following dovish commentary from some Fed officials that boosted rate cut probabilities on December 10 to 83% from just under 40% last week, according to the CME FedWatch.

Sentiments received a further boost after reports emerged of White House Economic Council Director Kevin Hassett emerging as the front-runner to be the next Fed Chair. Hassett aligns with US President Donald Trump's agenda of lower interest rates and has publicly stated that had he currently been Fed Chair, he would cut rates now because the "data suggests so."

Hassett also told Fox News in an interview that if asked to be the next Fed Chair, he would say "yes."

According to a note from BofA Securities, Hassett would look to bring interest rates to sub-3% if he becomes Fed Chair, from the current levels of 3.75% - 4%. However, he would find it difficult to push this agenda forward if the economy remains resilient and members of the FOMC do not come on board to support the idea, the note added.

The US Dollar index remains below levels of 100, while Gold prices remained firm above the $4,150 an ounce mark.

US markets will remain closed today on account of thanksgiving and will close early on Friday.