The U. S. stock market rose on Monday, spurred by a jump in tech stocks and renewed expectations that the Federal Reserve may slash its benchmark interest rate at its December meeting. The S&P 500 climbed 108 points, or 1. 6%, while the Dow Jones Industrial Average rose 294 points, or 0. 6%, as of 2: 10 p. m. EDT. The tech-heavy Nasdaq composite climbed 2. 7%. Companies with investments in artificial intelligence saw gains on Monday. Alphabet, which has been getting praise for its newest Gemini AI model, rallied 5. 5% and was one of the strongest forces lifting the S&P 500. The jump in tech stocks comes as investors continue to assess the potential of AI-focused businesses, even as questions remain about whether an AI bubble is forming. AI chipmaker Nvidia gained 2. 1%. Stocks also rose on renewed expectations that the Federal Reserve may cut interest rates for a third straight time at its Dec. 10 meeting. Traders now place the likelihood of a rate cut around nearly 80%, up from 41% on Thursday, according to data from CME FedWatch. But Monday’s gains were hesitant, and the S&P 500 rallied to a gain of 1% only to halve it within the first 15 minutes of trading, before picking up momentum again. Stocks have been swinging sharply, not just day to day but also hour to hour, in recent weeks as worries weigh about what the Fed will do with interest rates and whether too much money is pouring into AI and creating a bubble. All the uncertainty is creating the biggest test for investors since an April sell-off, when President Donald Trump shocked the world with his “Liberation Day” tariffs. Still, despite all the recent fear, the S&P 500 remains within 2. 8% of its record set last month. Fresh economic data Several more tests lie ahead this week for the market, though none loom quite as large as last week’s profit report from Nvidia or the delayed jobs report from the U. S. government for September. One of the biggest tests will arrive on Tuesday, when the U. S. government will deliver data showing the inflation rate at the wholesale level in September. Economists expect the data to show a 2. 6% rise from a year earlier, the same inflation rate as August. A higher-than-expected reading could deter the Fed from cutting its main interest rate in December because lower rates can worsen inflation. Some Fed officials have already argued against a December cut in part because inflation has stubbornly remained above their 2% target. U. S. markets will be closed on Thursday for the Thanksgiving holiday. A day later, it’s on to the rush of Black Friday and Cyber Monday. On Wall Street, U. S.-listed shares of Danish drugmaker Novo Nordisk fell 5. 8% Monday after it reported that its Alzheimer’s drug failed to slow progression of the disease in a trial. Grindr dropped 9. 9% after saying it’s breaking off talks with a couple of investors who had offered to buy the company, which helps its gay users connect. A special committee of the company’s board of directors said it had questions about the financing for the deal by the investors, who collectively own more than 60% of Grindr’s stock. Bitcoin, meanwhile, continued its sharp swings. It was sitting near $87,600 after bouncing between $82,000 and $94,000 over the last week. It was near $125,000 last month. The cryptocurrency has shed more than $700 billion in market capitalization since it peaked in early October and is trading at its lowest level since April. In stock markets abroad, indexes were mixed in Europe following a mixed finish in Asia. Hong Kong’s Hang Seng jumped 2% for one of the world’s biggest moves. It got a boost from a 4. 7% leap for Alibaba, which has reported strong demand for its updated Qwen AI app. Alibaba is due to report earnings on Tuesday. In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury eased to 4. 04% from 4. 06% late Friday.
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