On the trading floor of the New York Stock Exchange (NYSE) in New York City, activity surged as financial markets reacted positively on Monday, propelled by movements in Alphabet.
This rebound comes as the market seeks recovery in the lead-up to the Thanksgiving holiday week, following a recent downturn that has noticeably affected the year’s exuberant artificial intelligence rally.
During Monday’s session, the S&P 500 appreciated by 1.3%, while the Nasdaq Composite soared 2.3%. The Dow Jones Industrial Average witnessed an uptick of 248 points, translating to a 0.5% increment.
Shares of Alphabet experienced a pronounced surge, reflecting investors’ rekindled optimism regarding the company’s competitive positioning in the AI sector.
Recently, Google unveiled its enhanced AI model, Gemini 3, nearly eight months after the introduction of Gemini 2.5. Consequently, the stock marked a rise of 4%.
The prevailing enthusiasm surrounding Alphabet also extended to various other players within the AI arena. Companies like Broadcom experienced a 9% rise, while Micron Technology gained 7%. Palantir Technologies and AMD each observed an approximate 5% increment.
Melissa Brown, managing director of investment decision research at SimCorp, articulated a word of caution: “It’s beneficial for Alphabet and its shareholders, yet I remain apprehensive when a solitary stock predominantly drives market advances. This does not signal a comprehensive recovery.”
The market’s recent resurgence has built upon gains initiated the preceding Friday, after the head of the New York Federal Reserve suggested a potential interest rate reduction in December.
Nevertheless, major indices have experienced substantial declines this month, as sky-high valuations associated with AI-linked stocks come under scrutiny.
The S&P 500 registered an approximate 2% drop last week, and its decline for November currently exceeds 2%. The Nasdaq Composite, which endured a loss of nearly 3% the previous week, is now down over 4% for the month.
Concurrently, the 30-stock Dow diminished by about 2% last week, representing a greater than 2% decrease month-to-date.
The remainder of November may present further challenges. Anticipated thinning of trading volumes in the following days, coupled with a scarcity of significant catalysts ahead of the Federal Reserve’s upcoming December meeting, raises the likelihood of increased volatility.
Brown emphasized that forthcoming economic data releases – such as retail sales and producer price index reports for September due on Tuesday – could potentially highlight a “stagflationary environment.” Such revelations could exert considerable influence on market sentiment.
“While the market may maintain a semblance of stability, heightened negativity could amplify the repercussions of adverse news,” she informed CNBC. “In a low-volume trading context, unfavorable news may yield an exaggerated impact.”
Source link: Cnbc.com.
