Nasdaq Composite Marks Its Strongest Thanksgiving Week Since 2008

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Nasdaq Composite Marks Its Strongest Thanksgiving Week Since 2008

The Nasdaq Composite Index closed the Thanksgiving week on a notably strong footing, achieving its best performance for this holiday period since 2008. While U.S. markets paused on Thursday, November 27, the Nasdaq [IXIC] held steady after climbing to a fresh 10-day high of 23,280. This followed a 1% rise during Wednesday’s session, extending the index’s rebound from the November 21 low of 21,900 to a total recovery of 6.3% for the month. Overall, the index recorded a weekly gain of 4.25%, underscoring a decisive shift in market sentiment.

Technical Signals Point Toward Strength

The rally mid-week carried significant technical implications. The index broke above the 23,150 level—previously last week’s high and the upper boundary of a major supply zone within the November downtrend. This breakout signaled a clear structural shift to the upside, reinforcing investor confidence as the Nasdaq pushed firmly above the key 23,000 psychological threshold.

Momentum indicators also strengthened. The daily RSI rose to 54.5, suggesting recovering bullish energy. On shorter timeframes, the hourly chart displayed a golden crossover as the 20 EMA crossed above both the 50 and 100 EMAs around the 22,700 area. This pattern is widely recognized as a precursor to further upward expansion during recovery cycles.

Macro Conditions Improve Outlook

Beyond technicals, broader economic factors are adding fuel to the Nasdaq’s rise. Investors are increasingly pricing in the possibility of a Federal Reserve rate cut in December—a sentiment supported by softer inflation readings and ongoing resilience in U.S. labor data. Lower inflation and steady job growth typically reduce the pressure on the Fed, boosting optimism in growth-sensitive sectors.

These conditions have particularly benefited tech stocks, where valuations tend to depend heavily on expectations around future interest rates. As macro data continues to ease concerns, appetite for risk assets has strengthened, supporting the Nasdaq’s outperformance.

AI Enthusiasm Lifts Technology Shares

Another dominant force in this week’s rally is renewed enthusiasm around artificial intelligence. Positive news and strong momentum from major players—such as Microsoft and AI-infrastructure provider CoreWeave—have reignited investor interest in the sector. This renewed optimism has countered earlier concerns about overstretched valuations or the possibility of an AI bubble.

As a result, technology and AI-focused companies have driven a large portion of the Nasdaq’s weekly gains, contributing to the index once again outperforming broader market benchmarks as the year moves into its final stretch.

Key Support to Watch

Looking ahead, all eyes will be on whether buyers can successfully defend the breakout area near 23,150 once markets reopen. Holding this level would further support the case for continued strength into December—especially as the index has already shown its capacity to recover nearly 900 points from earlier November declines due to easing inflation and improved risk appetite.

Conclusion

The Nasdaq’s strongest Thanksgiving week since 2008 represents more than just a seasonal rally—it reflects a market regaining confidence after weeks of volatility. With technical momentum building, macroeconomic pressures easing, and AI optimism refueling enthusiasm across the tech sector, the index is entering December with renewed potential.

However, sustaining this momentum will require buyers to continue defending key support levels as the broader economic narrative evolves. Whether driven by structural strength, shifting rate expectations, or the next wave of technological innovation, the Nasdaq’s recent performance serves as a reminder of how quickly sentiment can turn—and how powerful the recovery can be when multiple catalysts align.

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