US equities extended their gains on Wednesday, continuing the rebound ahead of the Thanksgiving holiday weekend.
The Dow Jones Industrial Average rose 0.9%, the S&P 500 added 0.9%, and the Nasdaq Composite gained around 1% following Tuesday’s rally.
Tech stocks led the advance. Nvidia reversed some of Tuesday’s losses, rising more than 1% amid intensifying competition in the AI chip sector. Microsoft, Amazon, and Apple contributed to the rally, while Alphabet slipped slightly from record highs.
Investor attention remains on Federal Reserve policy. Markets are now pricing in more than an 80% probability of a quarter-point rate cut in December after delayed September data showed weaker-than-expected retail sales and wholesale inflation. Initial jobless claims fell to their lowest since April, adding to rate-cut optimism.
Bitcoin also stabilised, rising to $90,000 after dipping to $81,000 last Friday. Despite the rebound, the cryptocurrency remains roughly 28% below its October all-time high of $126,000, and analysts warn that prices need to hold above $100,000 to reduce the risk of further declines.
In London, FTSE 100 pushed higher after Chancellor Rachel Reeves unveiled her latest budget.
The index closed up 0.9% at 9,691.58, while the FTSE 250 rose 1.2% to 21,885.52 and the AIM All-Share added 0.2% to 743.26. Gilt yields drifted lower, with the 10-year yield falling to 4.43% from 4.49% on Tuesday.
Reeves announced £26 billion in new taxes, with the centrepiece a three-year extension of the income tax threshold freeze, expected to raise £12.7 billion by 2030–31. The chancellor acknowledged the freeze would squeeze “working people” but said the burden must be shared.
The budget also included higher taxes on dividends, savings income, and property, reforms to salary-sacrifice pensions, adjustments to gambling duties, and a mileage-based EV charge. High-value homes over £2 million will face a new council tax surcharge, while energy bills will be trimmed by £2.3 billion over three years through green levy cuts.
Banking stocks rose after the sector was confirmed to face no new taxes. Lloyds gained 3.4%, Barclays climbed 3.2%, and NatWest added 2.3%.
Gambling shares reacted to duty changes, with Evoke Shares down 18%, while Entain, with broader international exposure, closed 3.4% higher.
Oil and gas stocks sold off after the windfall tax was confirmed to run until March 2030 unless prices drop sharply, with Serica Energy down 4.1% and Harbour Energy 4.7% lower.
