Stocks Stage Comeback in Time for Thanksgiving. What's Behind It
It’s Thanksgiving, and you know what that means. “Hey, sweety, why don't you come here and let us know how your high-beta stocks are doing. Here’s our little investor.”
And for once, the answer isn’t followed by a sigh. Stock traders are heading into the holiday with something they haven’t had in a while — gains and optimism.
Major US indices just logged their fourth straight day of gains, with the Nasdaq Composite on pace for its best Thanksgiving week since 2008.
That’s right: the last time the Nasdaq had a holiday rally this strong, we were still explaining what a “smartphone” was.
This year, it’s all about two things:
📈 AI Fears Cool Off
The market has spent the past month wrestling with fears that AI stocks were puffing up like an overfilled Thanksgiving parade balloon. But this week, the anxiety faded.
Microsoft
MSFT, CoreWeave 
CRWV, Dell 
DELL, and even suddenly-revived AI-adjacent names have found solid footing again. The Nasdaq 
IXIC jumped 0.8% on Wednesday, outpacing the other indices and reminding investors that tech still runs this town.
What changed?
NVDA, which has been under the most scrutiny, clawed back 1.4% Wednesday — though the stock is still well off its early-month peak.
Investors are clearly reshuffling their AI winners, but the trade lives on. A shakeout doesn’t mean a shutdown.
🟩 Breadth Returns: Not Just a Tech Party
All but two sectors of the S&P 500
SPX moved higher Wednesday, pushing the broader index up 0.7%.
The Dow
DJI matched that performance, rising 315 points, with both indices tracking for their best Thanksgiving week since 2012.
Even the defensive sectors joined in. When utilities and consumer staples start partying with semiconductors and mega-cap tech, you know sentiment’s shifting.
🏦 The Fed Is Quietly Setting the Table
Just a week ago, the odds of a December rate cut were a coin toss — roughly 50/50 according to CME FedWatch. Today, that probability has surged to more than 80%.
What a cut could mean to traders:
This week is also shortened — stock markets are closed Thursday and shut early Friday (ref: the economic calendar). With fewer trading hours to log, investors often front-load their optimism or their panic. This time, it’s mostly optimism.
🔄 Nvidia Isn’t Gone — It’s Just Taking a Breath
Nvidia’s stock remains sharply lower from its early November highs, but Wednesday’s move showed there’s still life in the AI leader.
Meta
META, Alphabet 
GOOGL, and select cloud names have picked up flows as traders diversify their AI bets.
And while Nvidia might not be the main driver of the rally this week (spoiler alert: it’s Google), its ability to stay positive helped prevent any emotional selling from spreading through tech.
🧁 The Warm, Lightly-Toasted Takeaway
If you were expecting a quiet, uneventful lead-in to the holidays — the market apparently had other plans.
Here’s where we’re at now:
And for once, the answer isn’t followed by a sigh. Stock traders are heading into the holiday with something they haven’t had in a while — gains and optimism.
Major US indices just logged their fourth straight day of gains, with the Nasdaq Composite on pace for its best Thanksgiving week since 2008.
That’s right: the last time the Nasdaq had a holiday rally this strong, we were still explaining what a “smartphone” was.
This year, it’s all about two things:
- A dovish Federal Reserve
- An AI trade that refuses to sit idle
📈 AI Fears Cool Off
The market has spent the past month wrestling with fears that AI stocks were puffing up like an overfilled Thanksgiving parade balloon. But this week, the anxiety faded.
Microsoft
MSFT, CoreWeave CRWV, Dell DELL, and even suddenly-revived AI-adjacent names have found solid footing again. The Nasdaq IXIC jumped 0.8% on Wednesday, outpacing the other indices and reminding investors that tech still runs this town.What changed?
- No new AI scandals and bubble talk
- No shocking spending pivots (thanks, Meta META )
- No high-profile shorts announcing apocalyptic bets (thanks, Burry)
- And some great data-center guidance in recent earnings (thanks, DellDELL )
NVDA, which has been under the most scrutiny, clawed back 1.4% Wednesday — though the stock is still well off its early-month peak.Investors are clearly reshuffling their AI winners, but the trade lives on. A shakeout doesn’t mean a shutdown.
🟩 Breadth Returns: Not Just a Tech Party
All but two sectors of the S&P 500
SPX moved higher Wednesday, pushing the broader index up 0.7%.The Dow
DJI matched that performance, rising 315 points, with both indices tracking for their best Thanksgiving week since 2012.Even the defensive sectors joined in. When utilities and consumer staples start partying with semiconductors and mega-cap tech, you know sentiment’s shifting.
🏦 The Fed Is Quietly Setting the Table
Just a week ago, the odds of a December rate cut were a coin toss — roughly 50/50 according to CME FedWatch. Today, that probability has surged to more than 80%.
What a cut could mean to traders:
- Cheaper borrowing
- Higher valuations
- Softer financial conditions
- And fewer landmines in the months ahead
This week is also shortened — stock markets are closed Thursday and shut early Friday (ref: the economic calendar). With fewer trading hours to log, investors often front-load their optimism or their panic. This time, it’s mostly optimism.
🔄 Nvidia Isn’t Gone — It’s Just Taking a Breath
Nvidia’s stock remains sharply lower from its early November highs, but Wednesday’s move showed there’s still life in the AI leader.
Meta
META, Alphabet GOOGL, and select cloud names have picked up flows as traders diversify their AI bets.And while Nvidia might not be the main driver of the rally this week (spoiler alert: it’s Google), its ability to stay positive helped prevent any emotional selling from spreading through tech.
🧁 The Warm, Lightly-Toasted Takeaway
If you were expecting a quiet, uneventful lead-in to the holidays — the market apparently had other plans.
Here’s where we’re at now:
- A four-day winning streak,
- A revival in Big Tech,
- A broad rally across sectors,
- And Fed expectations suddenly swinging toward cuts.
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Share TradingView with a friend:
tradingview.com/share-your-love/
Check out all #tradingviewtips
tradingview.com/ideas/tradingviewtips/?type=education
New Tools and Features:
tradingview.com/blog/en/
tradingview.com/share-your-love/
Check out all #tradingviewtips
tradingview.com/ideas/tradingviewtips/?type=education
New Tools and Features:
tradingview.com/blog/en/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.