Review & Preview: Time to Carve

Turkey Time. The stock market’s Thanksgiving-week parade pushed through the latest trickle of economic data.

The S&P 500 finished the day up 0.7%. The Dow Jones Industrial Average rose 315 points, or 0.7%. The Nasdaq Composite was up 0.8%.

Wall Street got updates on durable goods and weekly jobless claims, neither of which significantly shifted a resurgence in optimism surrounding a December interest-rate cut. Unlike most of the shutdown-delayed government data of late, jobless claims actually came out a day early, thanks to tomorrow’s holiday.

“The early news was also good as both initial and continuing claims came in lower than forecast,” writes Bespoke Investment Group co-founder Paul Hickey. “Durable Goods and Cap Goods orders were also released and came in better than expected.”

Those on Wall Street who weren’t already traveling ahead of the holiday also got the latest beige book from the Federal Reserve in the early afternoon. My Barron’s colleague Nicole Goodkind writes that the anecdotal information compiled by the 12 Federal Reserve Banks showed a cooling labor market and signs of softening consumer spending:

Across many districts, the Beige Book found that employment “edged lower,” marking a shift from earlier reports that emphasized steadier job gains. Several regions, including New York, Dallas, and Minneapolis, reported slight declines in head counts. Businesses generally avoided large layoffs but said they were relying more on attrition and hiring only to replace departing workers.

Labor demand was also described as weaker in multiple districts. Contacts noted easier hiring conditions and a cooling in temporary staffing—often an early sign of slowing labor needs. Wage growth remained modest, with some districts reporting flat starting wages.

December rate-cut odds were steady at 85% on Wednesday, but that’s up from 30% one week ago, according to the CME FedWatch Tool. The new rate cut hopes have been a boon for the stock market, especially smaller stocks.

The Russell 2000 gained 0.8% today. The small-cap index is riding its best four-day stretch since Nov. 8, 2024.

When investors return from the holiday—stock markets have a half day on Friday—the S&P 500 and Dow will look to secure their best Thanksgiving weeks since 2012. The Nasdaq is on track for its best since 2008.

Review & Preview will be off tomorrow, back in your inbox on Friday evening. Happy Thanksgiving!

Company

Last

Chg

Chg%

Dow Jones Industrial Average

47,716.42

289.30

0.61%

S&P 500 Index

6,849.09

36.48

0.54%

NASDAQ Composite Index

23,365.69

151.00

0.65%

Market Data as of

The Hot Stock: Robinhood Markets +10.9%
The Biggest Loser: Workday -7.9%

Best Sector: Utilities +1.3%
Worst Sector: Healthcare -0.2%

Created with Highcharts 9.0.1Wednesday, Nov. 26Index performanceSource: FactSetAs of Dec. 1, 4 p.m. ET

Created with Highcharts 9.0.1Dec. 1-1.0-0.8-0.6-0.4-0.20%Nasdaq CompositeS&P 500Dow industrials

The Calendar

U.S. stock and bond markets will be closed for Thanksgiving tomorrow.

What We’re Reading Today

• Tariffs Could Inch Lower in 2026. But Another Ticking Time Bomb for Trade Is Looming.
• Amazon Is Spending Billions to Win Christmas. Why the Stock Looks Like a Bargain.
• Polymarket Is Cleared to Offer Prediction Markets as U.S. Regulator Remains Quiet on Sports Betting
• How a 10% Dividend Could Save Charter Communications Stock
• Roblox Isn’t Playing Games. Why the Stock Could Jump 50%.

What’s Ahead for Markets in 2026? Join Barron’s virtual roundtable on Dec. 11.

From “Liberation Day” tariffs to torrid rallies in AI stocks and gold, this year has been full of surprises. Join us for discussions with investment strategists and money managers about the outlook for the economy and markets in 2026—and how to position your portfolio for success.

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