US Equity Indexes Rise Amid Thin Volumes as Weak Economic Data Keeps Policy Easing Bets Elevated

04:58 PM EST, 11/26/2025 (MT Newswires) -- US equity indexes rose for the fourth straight day on Wednesday, albeit amid thin volumes, as weakness in economic data continued to support elevated expectations for a December interest-rate cut.

The Nasdaq Composite advanced 0.8% to 23,214.69 ahead of Thanksgiving on Thursday, with the S&P 500 up 0.7% to 6,812.61 and the Dow Jones Industrial Average 0.7% higher at 47,427.12. Technology, utilities, and materials were among the top gainers. Communication services and healthcare were the only decliners intraday.

Nasdaq's trading volume stood at 6.33 billion, compared with a daily average estimate of 9.76 billion. The corresponding figures for the S&P 500 were 2.7 billion versus 5.47 billion. For the Dow, the data were at 455.5 million and 525.0 million, respectively.

The CBOE Volatility Index slumped 7.4% to 17.19 intraday, giving up gains accumulated last week when AI capital expenditure and circular funding concerns hit high-growth areas such as technology, communication services, and consumer discretionary.

Volatility receded after New York Fed President John Williams said last Friday he sees room for "further adjustment" to interest rates in the near term. The odds of a 25-basis-point rate cut next month from the Federal Reserve remained elevated at 83% on Wednesday, versus 30% a week ago, according to the CME FedWatch Tool, as recent data have reflected economic weakness.

In economic news on Wednesday, the September durable goods report from the Census Bureau showed a 0.5% increase in new orders, in line with expectations but below the 3% jump in August, amid weakness in the civilian aircraft segment.

The Institute for Supply Management's Chicago PMI reading fell to 36.3 in November from 43.8 in October, compared with the 43.6 expected in a survey compiled by Bloomberg.

Initial jobless claims from the Labor Department fell to 216,000 in the week ended Nov. 22 from 222,000 a week earlier, compared with estimates compiled by Bloomberg for an increase to 225,000.

"The economy isn't slipping into recession, but it's weak enough to allow the Fed another cut," Kim Forrest, chief investment officer at Bokeh Capital Partners, told Reuters. "There's still a high amount of people that are on unemployment, so this gives the Fed headroom to be able to cut some more."

Gold futures rose 0.6% to $4,165.11 intraday, the highest in almost two weeks. Silver futures jumped 3.4% to $52.01. Both precious metals reflect expectations of policy easing.

US Treasury yields were mixed, with the 10-year down one basis point to 3.99%, the lowest for November. While the two-year yield rose 1.8 basis points to 3.48%, that level is the month's weakest.

In company news, Miami International (MIAX) signed an agreement to sell 90% of equity in its unit, MIAX Derivatives Exchange, to Robinhood Markets (HOOD) , which has a partnership with Susquehanna International. Shares of Robinhood surged 11%, the biggest outperformer on the S&P 500.

TD Cowen, RBC Capital Markets, and BNP Paribas Exane were among the firms to cut their respective price target for Workday's (WDAY) shares after the company reported Q3 results overnight. Shares of Workday slumped 7.9%, among the steepest decliners on the S&P 500 and the Nasdaq.

Boeing (BA) reported late Tuesday the signing of a $2.47 billion contract with the US Air Force for 15 additional KC-46A Pegasus tankers. Shares of the aircraft manufacturer jumped 2.5%, the Dow's top gainer.

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