Alphabet, interest rate hopes help lift stock market

MARKET ROUNDUP

- BY STAN CHOE

The U.S. stock market rallied on Monday, the start of a week with shortened trading because of the Thanksgiving holiday.

The Standard & Poor's 500 index climbed 1.5% for one of its best days since the summer and added to its jump from Friday, finding some strength after a shaky few weeks. The Dow Jones industrial average rose 0.4%, and the Nasdaq composite jumped 2.7%.

Stocks got a lift from rising hopes that the Federal Reserve will cut its main interest rate again at its next meeting in December, a move that could boost the economy and investment prices.

The market also benefited from strength for stocks caught up in the artificial intelligence frenzy. Alphabet, which has been getting praise for its newest Gemini AI model, rallied 6.3% and was one of the strongest forces lifting the S&P 500. Chipmaker Nvidia rose 2.1%.

Monday’s gains followed sharp swings in recent weeks, not just day to day but also hour to hour, caused by uncertainty about what the Fed will do with interest rates and whether too much money is pouring into AI and creating a bubble.

All the worries are creating the biggest test for investors since an April selloff, when President Trump shocked the world with his “Liberation Day” tariffs.