U.S. Market Snapshot (Week of Nov 24–28, 2025)
- Vitruvius Capital
- Dec 2
- 3 min read
The U.S. stock market enjoyed a strong rebound in the holiday-shortened week, with major indices climbing on optimism that the Federal Reserve may soon ease monetary policy. Despite low trading volume around the Thanksgiving holiday, stocks ended higher across the board as investors grew hopeful for a year-end rally. All three major indexes advanced during the week, buoyed by positive sentiment on the economy and interest rates:
Major Index Gains: The S&P 500 jumped approximately +3.7% for the week, and the tech-heavy Nasdaq surged about +4.9%, snapping a two-week losing streak. The Dow Jones Industrial Average also notched a weekly gain. This marked the best Thanksgiving week for stocks since 2012.
Fed Outlook: Softer economic data (like easing inflation readings and a cooling labor market) and dovish comments from Fed officials bolstered expectations that the Fed could cut interest rates in December, sparking investor optimism. Hopes for a year-end “Santa Claus rally” have risen as rate-cut bets solidify.
Tech & AI Boost: The market’s rebound was led by the technology sector. Notably, a major advancement in artificial intelligence – the release of Google’s Gemini 3 AI model – impressed investors with its capabilities, helping to quell fears of an “AI bubble” in tech stocks. This positive tech news, combined with broadly strong earnings, helped megacap tech shares recover from recent volatility.
Retail Sales Kick Off: The crucial holiday shopping season got off to a solid start. Early reports showed online sales on Thanksgiving Day were up ~5% from last year, indicating resilient consumer demand. Black Friday traffic and spending were also healthy, though some shoppers showed caution due to still-elevated inflation. Strong consumer activity in the retail sector added to the market’s upbeat tone, even as higher prices kept buyers selective.
In corporate news, the week was relatively quiet due to the Thanksgiving break. A brief technical outage at CME Group disrupted futures trading on Friday morning, but it was resolved quickly and had minimal lasting impact on equities. Overall, the combination of favorable economic signals, encouraging retail data, and hopes of Fed policy easing powered stocks upward. Investors are now looking ahead to December, anticipating that a confirmed Fed rate cut or continued positive data could sustain the momentum into a potential year-end rally. The upbeat performance this week – in contrast to earlier November volatility – has improved sentiment and put the bulls back in control heading into the final month of the year.
As November drew to a close, the S&P 500 and Dow Jones eked out small gains for the month – marking a seventh consecutive monthly advance – while the Nasdaq Composite was flat to slightly down, snapping its own multi-month winning streak. These modest November results, achieved despite mid-month volatility, helped extend the market’s strong year-to-date performance into the end of fall.
Investors now enter December with optimism for a traditional year-end upswing. Futures markets are pricing in a near-certain quarter-point Fed rate cut at the mid-December policy meeting, a prospect that could further bolster sentiment if realized. Seasonally, December has historically been a bullish month for stocks, with the S&P 500 averaging roughly +1.3% in December gains. This favorable backdrop – a likely Fed tailwind and positive seasonal trends – has many watching for a “Santa Claus rally” to cap off 2025 and carry the momentum into the new year.
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