US stocks experienced a notable surge on Monday, marking a positive start to the shortened Thanksgiving trading week. The tech-heavy Nasdaq Composite rose over 2%, while the S&P 500 advanced more than 1.3%. The Dow Jones Industrial Average saw a more modest increase of 0.4%, as Wall Street aimed to bounce back from a recent pullback that had dampened the year’s AI-driven market rally.
Market analysts remain hopeful that the recent decline is nearing an end, with significant losses and volatility observed throughout November. Leading tech giants, including Nvidia, Alphabet, and Tesla, were among the stocks driving this upward momentum.
Despite the stock market’s gains, cryptocurrency markets remain under pressure. Bitcoin traded slightly lower on Monday, hovering just under $87,000, after recovering from a dip below $81,000 the previous Friday.
Investor sentiment heading into the Thanksgiving holiday is heavily influenced by speculation regarding potential interest-rate cuts. Federal Reserve officials, including Christopher Waller and John Williams, have suggested the possibility of easing rates in December, stirring discussions among market participants. The economic data releases scheduled for this week will further assist investors in assessing these probabilities, with updates on producer prices, retail sales, and consumer confidence anticipated.
On the earnings front, companies such as Alibaba, Kohl’s, and Best Buy are expected to report results this week, wrapping up the earnings season for 2023.
Trade dynamics are also in focus as US and EU trade officials convene for discussions following their agreement in July. The looming decision by the Supreme Court on the legality of President Trump’s tariffs has market participants weighing the implications for future trade policies.
In a notable development, Nvidia shares rose 2% amid President Trump’s consideration of exporting the company’s advanced H200 AI chips to China. This follows a complex history of trade restrictions that have affected Nvidia’s operations in the lucrative Chinese market.
Michael Burry, famed for his early prediction of the 2008 financial crisis, has transitioned from running his hedge fund, Scion Asset Management, to launching a Substack newsletter. In it, he critiques the current AI investment landscape, likening it to the dot-com bubble, citing an oversupply of AI infrastructure without corresponding demand.
Oracle’s credit default swaps reached a three-year high as concerns over the AI bubble continue to persist. This increase suggests that investors are wary of Oracle’s ability to fulfill its debt obligations amid skepticism surrounding the sustainability of the ongoing AI boom.
Alphabet is aiming for another record high, with shares buoyed by the recent launch of its AI model, Gemini 3. Market analysts foresee significant potential for continued growth in Alphabet’s stock price, particularly following an impressive showing in its AI capabilities.
Meanwhile, discussions continue regarding broader market movements, with Bitcoin exchange-traded funds on track for their worst month since their inception nearly two years ago. The cryptocurrency sector remains volatile, with reported outflows of around $3.5 billion.
In other news, shares of Novo Nordisk tumbled by 10% after the company announced that its Alzheimer’s drug failed to meet trial goals, impacting investor confidence significantly.
As the trading week progresses, investors will be keeping a close eye on various economic indicators and corporate earnings, all while navigating the complexities of global trade politics and fluctuating market trends.
