Nasdaq Composite hits strongest Thanksgiving week performance since 2008

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Sholanke Dele

27.11.2025

Nasdaq Composite hits strongest Thanksgiving week performance since 2008 — Nasdaq extends recovery to 6.3%

The Nasdaq Composite Index [IXIC] is holding steady today, Thursday, November 27, as the U.S. stock market pauses for the Thanksgiving holiday. The recent bullish momentum has lifted the index to a 10-day high of 23,280, following a 1% gain during Wednesday’s session. That move expanded the ongoing recovery from the November 21st low of 21,900, now totalling a 6.3% rebound and a 4.25% gain for the week, marking the strongest Thanksgiving week performance since 2008.

- Nasdaq extends recovery to 6.3% after breakout above 23,150 confirms bullish shift.

- Golden crossover near 22,700 signals renewed upside momentum ahead of December rate decision.

- Softer inflation and strong labour data boost rate-cut expectations supporting tech valuations.

Technically, Wednesday’s rally was significant because it broke above the 23,150 level, which was both last week’s high and the upper boundary of a last supply zone in the November downtrend. This break indicates a clear shift in market structure to the upside and validates a sustained move above the key 23,000 psychological level. The daily RSI has now climbed to 54.5, reflecting a change in momentum as the Nasdaq index continues to gather strength from this breakout.

Nasdaq price dynamic (Sept - Nov 2025). Source: Tradingview

On the hourly chart, a bullish crossover occurred where the 20 EMA moved above both the 50 and 100 EMAs at the 22,700 zone. This is commonly referred to as a golden crossover, and it often precedes further expansion to the upside during strong recovery phases.

AI-related stocks lift sentiment as investors reassess valuation risk in tech sector

The recovery has not only been technical in nature. Fundamentally, market sentiment is being driven by renewed expectations for a Federal Reserve rate cut in December. That expectation is supported by recent inflation data showing softer producer prices and continued signs of labour market strength. These macro developments have helped boost the valuation of growth stocks, especially in the technology sector, where future earnings are more sensitive to interest rate changes.

Another key support for the Nasdaq’s rise this week comes from resurgent AI optimism. Positive sentiment around companies like Microsoft and CoreWeave has helped revive enthusiasm in tech stocks and eased earlier concerns over stretched valuations and the so-called AI Bubble. As investors appear more confident in the sustainability of tech earnings, the Nasdaq has once again outpaced the broader market, reinforcing its typical year-end outperformance trend.

The next test will be whether buyers can defend the breakout zone around 23,150 when markets reopen. Holding this level would strengthen the case for further gains into December.

In recent analysis, we discussed how the Nasdaq Composite gained nearly 900 points as cooling inflation improved risk appetite. The index’s 4% weekly rise marked a sharp reversal from the bearish trend that dominated most of November.

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