US stocks experienced a robust surge on Monday, signaling a potential rebound as investors entered the shortened Thanksgiving trading week buoyed by expectations of a possible interest rate cut in December. The tech-heavy Nasdaq Composite climbed over 2.5%, and the S&P 500 advanced more than 1.4%, further extending the momentum from Friday’s market recovery. Meanwhile, the Dow Jones Industrial Average, consisting of fewer technology stocks, saw a modest increase of 0.5%.
This upward trend comes as market participants seek to recover from a recent downturn that has tempered this year’s AI-driven rally. Analysts have indicated that the current retreat might be nearing its end, providing a glimmer of hope amid notable losses and volatility experienced earlier this month. Major technology companies such as Nvidia, Alphabet, and Tesla led the market gains, reflecting a broader recovery in the tech sector.
In the cryptocurrency space, Bitcoin also gained traction, rising above $88,000 after a dip to nearly $80,000 late last week. This resurgence is attributed to increasing optimism surrounding a potential Federal Reserve rate cut. Investors maintain a keen focus on economic indicators, with key data releases anticipated this week, including updates on producer prices, retail sales, and consumer confidence.
For the week ahead, several companies are scheduled to announce earnings, highlighted by Alibaba, Kohl’s, and Best Buy, as the retail sector winds down toward the holiday rush. Additionally, discussions regarding President Trump’s tariffs are poised to take place as US and EU trade officials meet for the first time since a July agreement.
On the tech front, enthusiasm surged for Tesla after Melius Research categorized it as a “must own,” further stimulated by CEO Elon Musk’s announcement concerning the company’s AI4 chip integration in Tesla vehicles. Tesla shares witnessed a significant 7% increase during midday trading.
Nvidia’s stock also saw a rise of 2% as discussions arose regarding President Trump’s upcoming decision on exporting H200 AI chips to China. This decision may indicate a substantial shift in Nvidia’s operations, particularly in the competitive AI sector, amid previous setbacks under past administrations.
In a strategic pivot, renowned investor Michael Burry, famous for predicting the 2008 housing market crash, transitioned from managing a hedge fund to launching a Substack newsletter titled “Cassandra Unchained.” He draws parallels between the current AI boom and the dot-com bubble, underscoring concerns about oversupply and insufficient demand in the tech market.
Furthermore, Oracle’s credit default swaps hit a three-year high, reflecting increased investor caution regarding the company’s debt obligations, amidst broader skepticism about the sustainability of the AI sector.
Alphabet shares appeared set for another record high following the November 18 launch of its latest AI model, Gemini 3. This development, along with a substantial cloud deal with NATO, has analysts optimistic about Alphabet’s future performance.
As trading volumes pick up in the holiday-shortened week, investors remain wary of underlying market trends and economic indicators that will shape their strategies moving forward.
