Today’s Outlook:
• US MARKET : At the close of NYSE The Dow Jones Industrial Average rose 314 points, or 0.7%, the S&P 500 index gained 0.7%, and the NASDAQ Composite climbed 0.8%. S&P 500 closed higher Wednesday ahead of the Thanksgiving holiday as AI stocks rebounded and risk appetite was boosted by expectations that the Federal Reserve will end the year with another rate cut next month.
AI-stocks including NVIDIA Corporation and Oracle Corporation climbed, cutting some recent losses, after Deutsche Bank said the bear case for latter “looks bullish,” adding that future value of the company doesn’t reflect the value from its partnership with OpenAI. Dell Technologies stock rose after the tech giant reporting an impressive outlook after Tuesday’s close.
Increased confidence that the Federal Reserve will cut interest rates next month has boosted sentiment, with a number of Fed policymakers speaking out in support of easing monetary policy over the course of the last few days. Weaker-than-expected retail sales data for September indicated that the U.S. consumer was struggling, while data released earlier Wednesday showed that initial jobless claims increased by more than 200,000 last week. Markets are pricing in an over 80% chance the Fed will cut rates by 25 basis points during its Dec. 9-10 meeting, up sharply from the roughly 40% chance seen last week, CME Fedwatch showed. There will be special attention paid to the release of the Fed’s Beige Book later in the session. The Fed will also receive more cues on inflation before its December meeting, with PCE price index data for September, which was expected to be released this week, being rescheduled to Dec. 5, the Commerce Department’s Bureau of Economic Analysis said on its website.
Adding to the expectations of lower rates, U.S. Treasury Secretary Scott Bessent said on Tuesday he was concluding a second round of interviews later in the day for a new Federal Reserve leader, and there was a good chance President Donald Trump would announce his pick before Christmas. White House economic adviser Kevin Hassett is seen as the frontrunner, Bloomberg reported, citing unnamed people familiar with the matter. Hassett, like Trump, has said interest rates should be lower than they are now under the leadership of Fed Chair Jerome Powell.
• EUROPEAN MARKET : European stocks ended Wednesday in positive territory amid rising expectations that the U.S. Federal Reserve will cut interest rates in December. The panEuropean Stoxx 600 finished the session almost 1.1% higher, with most sectors and major regional bourses in the green
In the U.K., all eyes are on the Autumn Budget on Wednesday with Chancellor Rachel Reeves set to unveil her spending and taxation plans for the year ahead. There are widespread expectations that the finance minister will announce a raft of tax hikes as she tries to stick to self-imposed rules on spending and borrowing, and has a fiscal black hole to fill as a result.
European investors also monitored developments in U.S.-led negotiations on a Ukraine peace deal. On Tuesday, U.S. President Donald Trump said a deal was “very close.” U.S. special envoy Steve Witkoff is set to meet with Russian President Vladimir Putin in Moscow, Trump added, while U.S. Army Secretary Dan Driscoll “will be meeting with the Ukrainians.” It came after reports emerged that Kyiv had accepted the reworked terms of the peace plan, originally drafted by the U.S.
• ASIAN MARKET : Most Asian stocks rose sharply on Wednesday as markets priced in a greater chance the U.S. Federal Reserve will cut interest rates next month, with technology shares leading gains as they rebounded from recent losses.
Japan’s Nikkei 225 and South Korea’s KOSPI were the best performers in Asia, rising about 2% each on a sharp recovery in tech shares. Japan’s TOPIX index added 1.9%, benefiting from buying into industrials and energy stocks with exposure to the artificial intelligence trade. Chipmaking, electronics, and data center stocks rose across the board on renewed hopes that spending on AI will remain strong in the coming quarters. Japanese tech conglomerate SoftBank Group Corp. surged 6%, rebounding from a 2-½ month low after it lost about 10% apiece in the last two sessions. Concerns over the company’s exposure to OpenAI, which also faces increased competition from Google, had battered Softbank in recent sessions.
Hong Kong’s Hang Seng index lagged its tech-heavy peers, drop in Alibaba Group after it reported somewhat mixed earnings for its fiscal second quarter. Caution towards China grew after the U.S. was seen intervening in a bitter diplomatic dispute between the country and Japan
• COMMODITIES: Oil prices settled up on Wednesday, bouncing back from one-month lows in the previous session, as investors assessed prospects of oversupply and talks over a Russia-Ukraine peace deal ahead of the U.S. Thanksgiving holiday. Brent crude futures settled 65 cents, or 1.04%, higher to USD 63.13 a barrel, while U.S. West Texas Intermediate crude futures gained 70 cents, or 1.21%, at USD 58.65. OPEC+ is likely to leave output levels unchanged at its meeting on Sunday, three OPEC+ sources told Reuters on Tuesday. Offering some support to crude prices were rising expectations for a potential U.S. Federal Reserve interest rate cut in December. Lower rates would stimulate economic growth and bolster demand for oil.
• INDONESIA : The JCI closed in positive territory, surging 0.94% to a new all-time high (ATH) of 8,602.13, marking a breakout above its previous ATH resistance. The index is now attempting to hold above the 8,400–8,450 area as its next key support zone
Several stocks such as BUMI, RAJA, and RATU posted strong breakouts, indicating potential continuation of their upward momentum. Investors are advised to stay alert and manage positions using individual trailing stops, while closely monitoring key technical levels and the index’s overall response.
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