U.S. Stock Market Gains Ground Ahead of Thanksgiving
NEW YORK (AP) — The U.S. stock market is on the rise again as of Monday, at least temporarily, as everyone gears up for the Thanksgiving holiday.
The S&P 500 climbed by 0.9%, continuing the upward trend from Friday. By 10 a.m. ET, the Dow Jones Industrial Average was up by 72 points, which is about 0.2%, while the Nasdaq Composite surged by 1.7%.
This increase in stock prices can largely be attributed to rising expectations. There’s talk that the Federal Reserve might consider cutting interest rates again, which, of course, could potentially boost both the economy and investment valuations.
Additionally, the market has found support from solid stock performance amid ongoing recession concerns. A major driver has been the buzz around artificial intelligence, particularly with Alphabet gaining significant recognition for its latest Gemini AI model, which saw an increase of 5.6%. In contrast, Nvidia experienced some fluctuations before ultimately dropping by 0.3%.
However, as we’ve seen unfold in recent weeks, an early gain doesn’t guarantee steady progress. Stock prices can be quite volatile, shifting not just daily but seemingly every moment. Concerns related to Fed policies on interest rates, along with worries about the large influx of investment into AI, continue to loom large. There’s a sense that some might be fearing a potential bubble.
In fact, within the initial 15 minutes of trading on Monday, the S&P 500 index rose 1% only to retract some of that momentum shortly after.
These uncertainties present quite a challenge for investors, a test that brings to mind the April sell-off when President Trump made headlines with his “Liberation Day” tariffs. Despite the anxious atmosphere, the S&P 500 remains within 3.3% of its record set last month.
This week is not without its hurdles, with one of the more significant challenges being the release of key economic data from the U.S. government, particularly regarding wholesale inflation figures for September, scheduled for Tuesday.
Economists are predicting an inflation increase of 2.6% year-over-year, maintaining the same pace as August. If inflation rates come in lower, it could complicate matters, making it less likely for the Fed to implement a third rate cut this December, as some officials have voiced concerns over persistent inflation, which remains stubbornly above the 2% target.
Nevertheless, many traders still anticipate a roughly 79% probability of a rate cut next month, which is an increase from 71% on Friday and a noticeable uptick from just a week ago.
Looking ahead, the U.S. markets will close on Thursday for Thanksgiving, with Black Friday marking the start of holiday shopping, leading into Cyber Monday.
Mondays on Wall Street
In other market news, U.S.-listed shares of Danish drugmaker Novo Nordisk tumbled 8.3% after announcing its Alzheimer’s drug fell short in clinical trials.
Meanwhile, Bitcoin has been experiencing erratic price changes, with its value around $86,000 recently, falling within a range of $82,000 to $94,000, notably down from nearly $125,000 last month.
Globally, stock indexes presented a mixed picture across Europe and Asia. In Hong Kong, the Hang Seng jumped 2%, spurred by a 4.7% rise in Alibaba after it reported strong interest in its updated Qwen AI app, with earnings due out on Tuesday.
On the bond front, U.S. Treasury yields stayed fairly steady, with the yield on the 10-year U.S. Treasury note dipping slightly to 4.04% from 4.06% at the end of Friday.
