U.S. stocks continued their upward momentum in midday trading on Wednesday, November 27, as major indices extended recent gains ahead of the Thanksgiving holiday. The number of Americans filing first-time jobless claims last week came in lower than expected.

The Dow Jones Industrial Average rose 405.87 points, or 0.86%, to 47,518.32. The Nasdaq Composite gained 213.02 points, or 0.93%, reaching 23,238.61, while the S&P 500 climbed 58.45 points, or 0.86%, to 6,824.33. U.S. markets will be closed on Thursday for Thanksgiving and will close early at 1:00 p.m. ET on Friday.

After opening lower on Tuesday, U.S. stocks reversed course to close higher, with all three major indices ending in positive territory following a volatile session. The 30-stock Dow surged over 660 points, or 1.4%, marking its third consecutive day of gains. Tech stocks provided significant support to the broader market. Alphabet shares hit a record high amid reports that Meta Platforms is considering adopting TPU chips from Google's parent company by 2027. Meanwhile, chipmaker Nvidia declined more than 2.5%.

Clark Bellin, President and Chief Investment Officer of Bellwether Wealth, noted, "U.S. stocks are attempting to rebound from recent declines, suggesting dip buyers remain active. The November pullback only retraced about 4% from October's highs—well below the typical 10% correction threshold."

Bellin added, "While we expect stocks to retest previous highs, there's a lack of clear catalysts for further upside between now and year-end."

Investors continue to monitor factors that could influence the Federal Reserve's next rate decision. According to the CME FedWatch Tool, traders currently price in an 85% chance of a 25-basis-point rate cut in December.

U.S. Treasury Secretary Scott Bassett stated on Tuesday that President Trump is "highly likely" to announce his nominee for the next Fed chair before Christmas.

Although Bassett mentioned ongoing candidate interviews, market expectations shifted toward White House National Economic Council Director Kevin Hassett after multiple reports identified him as the frontrunner.

Following these developments, traders rapidly increased bets on rate cuts over the next year. Markets now broadly anticipate Hassett will implement the aggressive easing advocated by President Trump, as he is perceived as more dovish.

Despite recent gains, November remains a challenging month for equities. Concerns over stretched valuations have weighed on high-growth tech stocks, leaving all three major U.S. indices on track for monthly losses.

Year-to-date, the S&P 500 is down about 1%, while the tech-heavy Nasdaq has fallen roughly 3%. The Dow has declined approximately 1% over the same period.

In economic data, U.S. initial jobless claims dropped to 216,000 last week, below expectations.

The Labor Department reported Wednesday that seasonally adjusted initial claims for the week ending November 22 fell by 6,000 to 216,000, undershooting the Dow Jones consensus estimate of 225,000.