Stocks closed sharply higher for a second time in as many days this holiday-shortened trading week, although Nvidia and other semiconductor shares fell on a report Meta Platforms may use Google's AI chips in their data centers.

The Dow Jones Industrial Average surged 664 points, marking a three-day winning streak, as investor focus shifted to the Federal Reserve's potential December rate cut. This sentiment was further fueled by reports of a potential Fed chair candidate favoring lower rates and comments from New York Fed President John Williams.

Indeed, JPMorgan Chase analysts estimate U.S. large-cap stocks will return 6.7% annually over the next 10 to 15 years. And Goldman Sachs analysts estimate the S&P 500 will return 6.5% annually over the next decade, with downside and upside scenarios from 3% annually to 10% annually.

U.S. stocks rose for a fourth straight day, led by solid gains for technology companies. The S&P 500 rose 0.7% Wednesday and the tech-heavy Nasdaq gained 0.8%.

US stock futures moved higher early Tuesday as the Dow hit 47,243, up 64 points, while the S&P 500 rose to 6,796.50 and Nasdaq futures climbed to 25,164.25. Traders reacted to steady tech buying and lighter pre-holiday volatility.

QSR giant McDonald’s has lagged behind the Dow Jones Industrial Average over the past year, yet analysts remain moderately optimistic about the stock’s prospects.

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After a mixed start to the day, the three major U.S. stock-market indexes were all trading higher on the day. The Dow Jones Industrial Average was leading the three indexes, with the S&P 500 following and the Nasdaq Composite recently breaking positive.