Tech stocks are serving up an early Thanksgiving feast for investors. Oracle surged 4% Wednesday after Deutsche Bank called its recent pullback an "attractive entry point," lifting Nvidia and Microsoft in sympathy. The rally caps four straight days of gains across major indexes, with futures pricing in an 85% chance of December Fed cuts.
The Thanksgiving week rally is serving tech investors exactly what they ordered. Oracle shares jumped roughly 4% Wednesday after Deutsche Bank analysts declared the database giant's recent price pullback "presents an attractive entry point for investors when looking at Oracle's business in totality." The upgrade breaks Oracle's November losing streak, which saw the stock hobble along after wiping out its dramatic September surge. Nvidia and Microsoft rose alongside Oracle, proving that AI optimism still drives sympathy trades across the sector. "Thanksgiving week is generally a strong week in the markets. Everyone's feeling good," Eric Diton, president and managing director at The Wealth Alliance, told CNBC. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all recorded their fourth straight day of gains, extending what's becoming a textbook holiday week rally. But the real feast might come after the turkey. Futures markets are now pricing in roughly 85% odds that the Federal Reserve cuts rates by a quarter-point in December. When expectations run this high, disappointment hits harder. "If the Fed disappoints, you could have a sell-off," Diton warned, though he quickly added, "I don't think they will." The rate cut speculation gets more interesting when you factor in potential leadership changes. If White House National Economic Council Director Kevin Hassett assumes the Fed chair role when Jerome Powell steps down, rates could trend even lower, according to Bank of America economist Aditya Bhave. That scenario is already fueling Wall Street's increasingly bullish targets for 2026. CFRA Chief Investment Strategist Sam Stovall floated 7,400 for the S&P 500, while JPMorgan analysts see the index potentially hitting 8,000. Meanwhile, Apple is quietly winning the smartphone wars. Counterpoint Research data shows Apple will ship around 243 million iPhones this year, surpassing Samsung's projected 235 million smartphones. It would mark the first time in 14 years that Apple outstrips its Korean rival in total shipments. The milestone comes as AI features drive iPhone upgrade cycles, even as broader smartphone markets remain sluggish. But it's not all celebration in tech land. A new MIT study reveals AI could already replace 11.7% of the US workforce, equivalent to $1.2 trillion in wages across finance, healthcare, and professional services. The university's simulation of 151 million American workers suggests the AI displacement wave is closer than many expect. The timing couldn't be more relevant as Oracle, Nvidia, and Microsoft continue betting billions on AI infrastructure buildouts. Asia-Pacific markets joined Wednesday's tech rally, with India's Nifty 50 and BSE Sensex climbing to record highs. The global momentum suggests investors aren't just thankful for 2025's gains - they're positioning for more upside ahead.
Tech's Thanksgiving rally reflects more than holiday cheer - it signals genuine optimism about Fed policy, AI monetization, and competitive positioning heading into 2026. With Oracle breaking its slump, Apple potentially dethroning Samsung, and rate cuts on the horizon, investors have legitimate reasons for gratitude. The question isn't whether tech stocks can maintain momentum, but whether Wall Street's increasingly ambitious targets reflect reality or just post-turkey euphoria.
