S&P 500, Nasdaq, Dow Jones surge into month-end with five-day rally as rate-cut bets ignite markets, Dow set to approach its best winning streak since 2018?

Wall Street closed on a high note Friday(November 28), with major indexes extending their winning streak for the fifth consecutive day, even as the Nasdaq Composite ended the month in the red. US stocks climbed higher in a shortened post-Thanksgiving session, with the tech-heavy Nasdaq rising 0.65 percent to 23,365.69, the S&P 500 adding 0.54 percent to close at 6,849.09, and the Dow Jones Industrial Average advancing 289.30 points, or 0.61 percent, to finish at 47,716.42.

The Dow is on track to close November in positive territory, potentially marking its seventh consecutive positive month. If achieved, this would represent the blue-chip index’s longest winning streak since a 10-month run that concluded in early 2018.

Market sentiment was bolstered by growing expectations that the Federal Reserve will cut interest rates in the near term.
“The mood is back to a bit more of a risk-on sentiment in that the market is now 80 percent to 85 percent certain we’re going to get a [Federal Reserve] rate cut in just a couple of short weeks,” Brian Mulberry, client portfolio manager at Zacks Investment Management, said.

A quarter-point rate reduction in December would mark the Fed’s third consecutive cut, following moves in September and October.

Traders boosted bets on lower rates after New York Fed President John Williams signaled last week that “a further adjustment in the near term” to the federal funds rate remained possible.“It’s simply confirming that we are in an easing trend and that it will continue into the new year as well,” Mulberry continued.Friday marks the final trading day of November, with tech stock pullbacks dragging on the major indexes amid growing doubts about the future profitability of AI companies. According to the CNBC website, the Nasdaq slid nearly 2 percent for the month, putting an end to a seven-month winning streak, while the S&P 500 and Dow eked out slight gains, enough to secure their seventh straight month in the green.

For the week, the Dow rose more than 3 percent, the S&P 500 advanced almost 4 percent, and the Nasdaq Composite climbed over 4 percent.