U.S. stocks continue to rally, with the blue-chip Dow Jones Industrial Average closing at a three-month high ahead of the Thanksgiving holiday.
The Dow, which is comprised of 30 blue-chip names such as Apple (AAPL), Coca-Cola (KO) and Nike (NKE), is now at 35,273.03, its highest level since August 14 of this year.
The benchmark S&P 500 index is at 4,556.62, its highest closing level since Aug.1. And the tech heavy Nasdaq Composite index is sitting at 14,265.86, up 37% on the year.
The rally, which began at the start of November, is a sharp reversal for U.S. equities, which had previously declined for three consecutive months and fell into a technical correction defined as a 10% drop from recent highs.
The current rally has been sparked by economic data showing that inflation continues to retreat around the world. This has traders betting that central banks are now done raising interest rates.
At the same time, bond yields have retreated from the highs they reached in October after war broke out in the Middle East, giving stocks a further boost.
The yield on the benchmark 10-year U.S. Treasury is now 4.40%, down from 5% a month ago.
Expectations are building for a year-end Santa Claus rally on Wall Street, which refers to a rise in stock prices in December as we end the year.
U.S. markets are closed today (Nov. 23) for Thanksgiving followed by an abbreviated trading session on Nov. 24 to end the week.
