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S&P 500 and Nasdaq rally on Alphabet’s AI boost
S&P 500 jumps 1.6% as Alphabet’s AI gains boost stocks ahead of Thanksgiving holiday
S&P 500 jumps 1.6% as Alphabet’s AI gains boost stocks ahead of Thanksgiving holiday
– Stocks rose on Monday, led by Alphabet, as markets rebounded before Thanksgiving.
– Alphabet’s stock increased 6.3%, boosting other AI-related companies’ shares.
Stocks rose on Monday, led by Alphabet, as markets rebounded ahead of the Thanksgiving holiday week after a recent downturn in the AI sector.The S&P 500 increased 1.55% to 6,705.12, while the Nasdaq Composite surged 2.69% to 22,872.01, marking its best performance since May. The Dow Jones gained 202.86 points, or 0.44%, to close at 46,448.27.
Shares of Alphabet rose as investor confidence grew following the announcement of its upgraded AI model, Gemini 3. The stock increased by 6.3%. The positive sentiment around Alphabet also benefited other AI-related companies, with Broadcom up 11.1% and Micron Technology rising 8%. Palantir Technologies and AMD gained 4.8% and 5.5%, respectively, while Meta, Nvidia, and Amazon also saw advances.
Market Concerns
Market analyst Melissa Brown expressed caution regarding the reliance on a single stock to lead market gains, suggesting this trend may not be sustainable. Stocks have been recovering from Friday when the New York Federal Reserve hinted at a possible interest rate cut in December. Despite the recent rebound, major stock indices have faced declines this month, reflecting concerns over high valuations in the AI sector.
The upcoming trading period may bring challenges, with lower trading volumes expected and limited market catalysts before the Fed’s policy meeting. Economic data releases this week could further impact market sentiment, particularly if they suggest a stagflationary environment.
The stock market will be closed on Thursday for Thanksgiving and will have an early closing at 1 p.m. ET on Friday.
