Wall Street launched into the Thanksgiving holiday week with a powerful rally, as traders accelerated bets on a Federal Reserve interest rate cut next month following dovish remarks from key central bank officials.
Market sentiment shifted decisively after dovish signals from New York Fed President John Williams on Friday and Governor Christopher Waller on Monday, driving a swift repricing of rate expectations.
Traders now assign a 77% chance to a 25-basis-point cut at the Dec. 10 Federal Reserve meeting, up from 71% on Friday and just 25% one week ago, according to CME Group's FedWatch tool.
The Nasdaq 100 surged 2.4% by mid-morning in New York, eyeing its strongest one-day rally since late May.
The S&P 500 rose 1.4%, while the Dow Jones Industrial Average added 0.7%, trailing behind due to its lower exposure to high-growth tech names. Small-cap stocks also joined the rally, with the Russell 2000 climbing 1.7%.
Semiconductor stocks were among the top performers. Broadcom Inc. (NASDAQ:AVGO) jumped 9%, Micron Technology Inc. (NASDAQ:MU) rose 8% and Advanced Micro Devices Inc. (NASDAQ:AMD) gained 4.5%, as investors bet on the AI growth.
Within the Magnificent Seven, Alphabet Inc. (NASDAQ:GOOGL) stood out with a 4.7% gain, pushing its market capitalization above Microsoft Corp. (NYSE:MSFT), now making it the world's third-largest publicly traded company.
Tesla Inc. (NASDAQ:TSLA) also soared 7% after CEO Elon Musk said Sunday the company would design and deploy "several million AI chips" across its vehicle fleet and data centers.
Amazon.com Inc. (NASDAQ:AMZN) gained nearly 2% after announcing plans to invest up to $50 billion to expand its artificial intelligence and supercomputing infrastructure tailored for U.S. government agencies.
After a volatile week, Bitcoin (CRYPTO: BTC) edged higher, up 0.5% to $87,000, signaling a pause in the recent crypto selloff.
In commodities, gold rose 0.8% to $4,100, while silver gained 1% to $50.50.
Monday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % |
| Nasdaq 100 | 24,812.67 | 2.4% |
| Russell 2000 | 2,407.98 | 1.7% |
| S&P 500 | 6,700.97 | 1.5% |
| Dow Jones | 46,562.45 | 0.7% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) rose 1.4% to $614.40.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.6% to $465.25.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 2.3% to $603.63.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 1.6% to $239.38.
- The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed, up 2.6%; the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) lagged, down 0.9%.
Russell 1000’s Top 5 Gainers On Monday
| Stock Name | % Change |
|---|---|
| Inspire Medical Systems Inc. (NASDAQ:INSP) | +28.06% |
| Sandisk Corp. (NASDAQ:SNDK) | +13.19% |
| Lumentum Holdings Inc. (NASDAQ:LITE) | +13.15% |
| Tenet Healthcare Corp. (NYSE:THC) | +9.51% |
| Ciena Corp. (NYSE:CIEN) | +9.45% |
Russell 1000’s Top 5 Losers On Monday
| Stock Name | % Change |
|---|---|
| Copart Inc. (NASDAQ:CPRT) | -5.02% |
| Nexstar Media Group Inc. (NASDAQ:NXST) | -3.55% |
| Ollie’s Bargain Outlet Holdings Inc. (NASDAQ:OLLI) | -3.51% |
| H&R Block Inc. (NYSE:HRB) | -3.43% |
| Service Corp. International (NYSE:SCI) | -3.36% |
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