On the 24th (local time), major indexes on the U.S. New York stock market rose on expectations that the Federal Reserve (Fed) will cut rates in December and on strength in artificial intelligence (AI) stocks.
With trading volume expected to thin ahead of the Thanksgiving holiday, investors reacted sensitively to tailwinds such as a rebound in big tech corporations' share prices and the possibility of Ukraine-Russia peace talks.
On the New York Stock Exchange (NYSE) that day, the Dow Jones Industrial Average rose 223 points (0.5%) from the previous session to close. The large-cap-focused S&P 500 climbed 1.6%, extending gains, and the tech-heavy Nasdaq composite jumped 2.6% to finish the session.
Market experts said comments by key Fed officials eased uncertainty about a December rate cut and lifted investor sentiment. Earlier, Fed Governor Christopher Waller signaled support for a rate cut next month, giving the market a boost. John Williams, president of the New York Fed, also added momentum by leaving the door open to a short-term rate cut. As a result, money markets are pricing in about a 70% chance of a December cut.
In particular, tech stocks led the day's gains, including the "Magnificent 7 (M7)." Alphabet, Google's parent company, surged more than 5% as its in-house AI model "Gemini 3" drew positive reviews and its custom chip (TPU) edge stood out. Broadcom, which collaborates with Alphabet in custom chips, jumped 10.3%.
Semiconductor names also performed well. Micron Technology rose 7%, and Palantir Technologies and AMD gained 6% and 5%, respectively, joining the tech rally. Other big tech corporations such as Amazon and Meta Platforms also advanced.
Jay Hatfield, CEO of Infrastructure Capital Advisors, predicted the tech-led uptrend would continue. Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, also said, "With the market's re-rating and growing odds of a December rate cut overlapping, a year-end melt-up could emerge."
Some experts, however, raised concerns about concentration in specific names. Melissa Brown, head of applied research at SimCorp, said, "It is worrisome for sustainability when specific stocks such as Alphabet are leading the market higher," adding, "We need broader improvement across the market."
Among individual names, dating app Grindr plunged more than 11% on news it would withdraw a proposal to go private. Novo Nordisk, the driver of the obesity drug boom, fell nearly 6% on news that a clinical trial for an Alzheimer's treatment failed to meet key endpoints.
Government Bonds yields eased lower. The U.S. 10-year Treasury yield fell 3 bp (1 bp = 0.01 percentage point) to 4.03%. Crude prices seesawed and closed slightly higher as the possibility of peace talks between Ukraine and Russia was floated. West Texas Intermediate (WTI) settled up 1.4% at $58.86 a barrel.
The cryptocurrency market also gained. Bitcoin rose 0.7% to $88,593.64, and Ethereum added 4.5% to $2,969.06.