New York (AFP) – Wall Street stocks rallied Monday, extending a rebound as fresh hopes for a US interest-rate cut boosted sentiment after last week’s rollercoaster ride fueled by worries of an AI tech bubble. Tech giants enjoyed outsized gains, led by Google parent Alphabet after the company’s latest artificial intelligence offering scored strong reviews. Alphabet soared 6.3 percent, while the Nasdaq piled on 2.7 percent following gains by Apple, Tesla, and other tech giants.
Monday’s buoyant session “ties back to the whole idea that the AI trade still has life in it,” said Briefing.com analyst Patrick O’Hare. “The heart of the rebound we’re seeing today” is because the market was “rethinking” its earlier skepticism on whether there would be another rate cut in December, he added. US equities had also enjoyed a solid session on Friday following comments from New York Fed President John Williams that signaled the central bank could cut interest rates in December. On Monday, Federal Reserve Governor Christopher Waller told Fox Business that he was advocating for a rate cut next month, pointing to a “still weak” labor market.
Major European markets were a little more cautious. Frankfurt closed 0.6 percent ahead after German business sentiment fell more than expected in November, the latest sign that industry is losing faith in the government’s plans to revive the economy. London ended narrowly negative, while Paris closed down 0.3 percent. Earlier, Hong Kong closed up 2.0 percent and Tokyo was shut for a Japanese public holiday.
Wall Street indices have surged to multiple records in 2025, thanks in part to bullish sentiment about AI. The strong performance has also been supported by easing Fed policy and lately by the market’s judgment that US President Donald Trump’s tariffs have not had as much of a negative impact as initially feared. But recent weeks have nonetheless seen investors grow increasingly fearful that the vast sums pumped into tech may have been overdone and could take time to see profits realized, leading to warnings of a possible market correction. That has been compounded by uncertainty over whether the Fed will cut rates for a third successive time next month, although the latest comments from central bankers boost those odds.
Focus is now on the release this week of the US producer price index, one of the last major data points before officials gather, with other key reports postponed or missed because of the recent government shutdown. Trading volumes in New York are expected to be lighter than usual. The market will be closed for Thursday’s Thanksgiving holiday, followed by a half session on Friday.
– Key figures at around 2115 GMT –
New York – Dow: UP 0.5 percent at 46,456.05 (close)
New York – S&P 500: UP 1.6 percent at 6,705.57 (close)
New York – Nasdaq Composite: UP 2.7 percent at 22,872.01 (close)
London – FTSE 100: DOWN 0.1 percent at 9,534.91 (close)
Paris – CAC 40: DOWN 0.3 percent at 7,959.67 (close)
Frankfurt – DAX: UP 0.6 percent at 23,239.18 (close)
Hong Kong – Hang Seng Index: UP 2.0 percent at 25,716.50 (close)
Shanghai – Composite: UP 0.1 percent at 3,836.77 (close)
Tokyo – Nikkei 225: Closed for a holiday
Euro/dollar: UP at $1.1523 from $1.1513 on Friday
Pound/dollar: UP at $1.3110 from $1.3099
Dollar/yen: UP at 156.81 yen from 156.41 yen
Euro/pound: UP at 87.91 pence from 87.89 pence
Brent North Sea Crude: UP 1.3 percent at $63.37 per barrel
West Texas Intermediate: UP 1.3 percent at $58.84 per barrel
© 2024 AFP
