| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 47,427.12 | 314.67 | 0.67% |
| S&P 500 | 6,812.61 | 46.73 | 0.69% |
| Nasdaq | 23,214.69 | 189.1 | 0.82% |
| VIX | 17.19 | -1.37 | -7.38% |
| Gold | 4,197.40 | -4.9 | -0.12% |
| Oil | 58.49 | -0.16 | -0.27% |
OVERVIEW OF THE US MARKET
Wall Street closed higher on November 26, 2025, buoyed by robust economic data that reinforced expectations for a Federal Reserve rate cut in December amid signs of a resilient yet moderating labor market. The S&P 500 climbed 0.69% to close at 6812.61, while the Nasdaq Composite rose 0.82% to 23214.69, and the Dow Jones Industrial Average advanced 0.67% to 47427.12. Tech stocks led the gains, with Nvidia up 1.37% despite competition concerns from Alphabet’s AI chips, as investors digested positive durable goods orders and jobless claims figures. Alphabet surged 1.08% on reports of potential deals with Meta for its tensor processing units, pushing its market cap toward $3.9 trillion and narrowing the gap with Nvidia’s $4.2 trillion valuation.
Sector performance was mixed, with Information Technology up 1.27%, Materials gaining 1.21%, and Utilities advancing 1.32%, reflecting optimism around AI investments and infrastructure spending. Consumer Staples rose 0.97%, supported by steady retail data, while Communication Services dipped 0.49% and Health Care fell 0.25%. Among stock movers, Nvidia topped volume at 183 million shares, Bitfarms jumped 11.91% on crypto-related sentiment, and Opendoor Technologies edged up 0.52%. Decliners included Ondas Holdings down 2.37% and BigBear.ai off 2.75%.
Economic releases bolstered market sentiment, with weekly jobless claims dropping to a seven-month low of 216,000, signaling low layoffs despite hiring challenges. Continuing claims rose slightly to 1.960 million, indicating building labor market slack but no sharp deterioration. Durable goods orders advanced 0.5%, with core capital goods up 0.9%, pointing to solid business investment amid AI surges, though tariffs pose risks to manufacturing. Retail sales rose modestly at 0.2% in September, below expectations, highlighting caution among lower-income consumers, but spending on services like dining out remained strong at 0.7%.
Investors are increasingly pricing in an 80% chance of a quarter-point Fed cut at the December 9-10 meeting, up from recent weeks, following dovish comments from policymakers. The Beige Book noted slight employment decreases but emphasized hiring freezes over layoffs, aligning with a “no hire, no fire” dynamic influenced by Trump’s trade and immigration policies. Bitcoin held steady around $88,000 after recovering from a seven-month low, with traders eyeing reduced downside protection costs in options markets as selling pressure eases. Crypto ETFs saw $6 billion in November outflows, yet long-term holders appear resilient.
Strategists remain cautiously optimistic, with some like those at Goldman Sachs warning of tariff impacts on speculative assets despite economic strength. The S&P 500’s risk appetite gauge has fallen to zero, signaling potential oversold conditions, but strong earnings and AI tailwinds could propel a year-end rally. As the Fed debates further easing amid elevated inflation, markets await November’s employment report on December 16, which includes delayed October data due to the government shutdown.
OVERVIEW OF THE AUSTRALIAN MARKET
The S&P/ASX 200 closed higher on November 26, 2025, gaining 0.81% to 8606.5, driven by resources and lithium stocks as hotter-than-expected inflation data reduced rate-cut bets and bolstered the Australian dollar. The All Ordinaries rose 0.85% to 8899.3, with advancers outpacing decliners 224 to 56. Materials led with a 1.84% surge, followed by Consumer Discretionary up 1.22% and Health Care advancing 1.18%. Energy gained 0.87%, Industrials 0.83%, and Consumer Staples 0.72%, while Information Technology fell 0.68%, Communication Services dipped 0.49%, and Utilities declined 0.84%.
The rally reflected a rotation back to lower P/E sectors like resources, despite a strong Nasdaq overnight, as funds favored materials amid stabilizing lithium futures on China’s GFEX after Friday’s plunge. Lithium names dominated gainers: Argosy Minerals jumped 15.2%, Lake Resources 14.5%, Pilbara Minerals 7.2%, and IGO 5.5%. Precious metals also shone, with Horizon Minerals up 12.7%, Perenti 7.1%, and Vault Minerals 6.5%. National Storage REIT soared 19.5% on a takeover proposal, boosting Abacus Storage King 9.3%. Droneshield rose 8.5% on a European contract, and Domino’s Pizza gained 7.9% after a substantial holding increase.
Decliners included Temple & Webster down 32.3% on a trading update, Invictus Energy off 32.1% on a JV update, and Viridis Mining halted at -29.7%. Tech underperformed, with Life360 down 4.4%, Technology One 2.8%, and Seek 2.5%.
October CPI accelerated to 3.8% year-on-year, above the 3.6% forecast, with trimmed mean at 3.3%, both exceeding the RBA’s 2-3% target. This dashed easing hopes, pushing AUD/USD up 0.55% to 0.6505 and signaling potential hikes in 2026. Building activity rose, with residential work up 4.2%, offsetting a 0.7% drop in broader construction, supporting GDP momentum into Q3’s 3.9% forecast.
The APRA tightened mortgage rules, capping high-debt loans at 20% of new lending from February, aiming to curb risks from rising indebtedness at 181.8%. Home prices climbed fastest in over two years, but affordability concerns persist.
Strategists see the rally as tentative without broader participation from financials and banks, which rose just 0.39%. UBS and Barrenjoey predict 2026 hikes, with Barrenjoey eyeing February action. Markets await Q3 capital expenditure Thursday, expected at +0.5%, as inflation trends upward since June.
