Wall Street’s major indexes extended gains into a fourth straight session as futures rose Wednesday morning, driven by growing conviction that the Federal Reserve will cut interest rates in December.

Investors responded to fresh data showing U.S. weekly jobless claims fell to 216,000 — below expectations — and a core capital-goods orders report showing a 0.5% increase, both suggesting the economy remains stable but soft enough to permit monetary easing.

Consequently, traders pushed the odds of a 25-basis-point rate cut next month to around 85%, nearly double the probability from just a week ago.

With markets factoring in possible easing, stocks across sectors edged up. The rally was led by mega-cap and growth stocks, while the communication services sector lagged slightly due to a dip in some major tech firm shares.

🔧 What’s Fueling the Markets & What to Watch

Several factors pushed markets higher — and analysts say some key events may shape what comes next:

• Softer economic signals: Recent drops in jobless claims and modest growth in capital goods orders signal cooling demand — enough to give the Fed room to cut rates.
• Strong investor sentiment: As rate-cut bets grow, investors are repositioning toward equities, boosting demand for stocks across sectors.
• Upcoming economic data: Markets are awaiting the Fed’s Beige Book along with other data, which could influence the central bank’s December decision.
• Tech and mega-cap support: Gains in large tech and growth-oriented stocks are propelling broader market strength.
• Volatility risk: Despite optimism, markets remain sensitive — any unexpected strong data or hawkish comments from the Fed could reverse gains quickly.

Overall, investors appear optimistic but remain watchful. The combination of soft economic indicators and rising rate-cut expectations has created a favorable environment — for now.

🌍 What This Means for Global & Retail Investors

If the Fed moves to cut rates in December, it could lower borrowing costs, encourage investment, and provide a tailwind for stock markets globally. For global investors, this means emerging markets and riskier assets might see renewed inflows.

For retail investors, sectoral opportunities may arise — especially in rate-sensitive sectors like banking, real estate, and consumer discretionary. However, the rally’s sustainability depends on upcoming economic data and Fed communication.

In the near term, the move reflects a cautious hope: markets are banking on easier money, but many are preparing to pivot quickly if the economic backdrop or policy outlook shifts.