Tech Stocks Led by Alphabet and Tesla Surge
Fed's Waller Supports December Rate Cut... Investor Sentiment Rebounds
September Retail Sales, Beige Book Among Key Releases This Week
Thanksgiving Holiday Expected to Reduce Trading Volume, Heighten Volatility Concerns
All three major U.S. stock indices rose simultaneously on November 24 (local time), ahead of the Thanksgiving holiday. Although stocks related to artificial intelligence (AI) had experienced a correction earlier this month amid skepticism about the ongoing AI rally, a renewed buying trend in AI-related stocks, led by Alphabet, Google's parent company, has helped the market rebound.
Traders are working on the floor of the New York Stock Exchange (NYSE) in the United States. Photo by AFP Yonhap News
As of 11:30 a.m. on the New York Stock Exchange, the blue-chip Dow Jones Industrial Average was up 272.49 points (0.59%) at 46,517.9. The S&P 500 Index, focused on large-cap stocks, was up 91.81 points (1.39%) at 6,694.8, while the tech-heavy Nasdaq Index had risen 519.957 points (2.33%) to 22,793.04.
By individual stock, Alphabet, Google's parent company, surged 4.77%. The positive reception to Google's latest AI model, Gemini 3, announced on November 18, has fueled buying interest based on expectations for AI competitiveness. Tesla jumped 6.63% after CEO Elon Musk revealed that the development of its proprietary AI chip, A15, is in the final stages and that work on the A16 chip has also begun. Nvidia rose 1.55%, and Palantir gained 4.79%.
Healthcare stocks were also on the rise. Following a Politico report that the White House will announce a two-year extension of Obamacare subsidies along with new eligibility requirements, Oscar Health soared 20.47%, while Centene and Molina Healthcare gained 7.53% and 4.5%, respectively.
Last week, the New York stock market struggled due to concerns over overheated AI investments. The Dow Jones fell 2%, while the S&P 500 and Nasdaq dropped 2% and 3%, respectively.
Michael Ball, a strategist at Bloomberg, commented, "U.S. stocks started from an oversold position as the Thanksgiving holiday shortened the trading week," adding, "If recent volatility subsides and market participation expands, there is a high possibility that stock prices will surge."
Investor optimism is rising as attention shifts to the possibility of an interest rate cut next month. On this day, Federal Reserve Governor Christopher Waller expressed support for a rate cut in December. This further heightened market expectations for a rate cut, following New York Fed President John Williams' suggestion on November 21 of a possible short-term benchmark rate reduction.
However, there are still many forecasts that market volatility will persist for the time being. With the market closed for Thanksgiving on November 27 and an early close at 1 p.m. on November 28, trading volume is expected to decrease. In addition, the lack of a clear catalyst to drive stock prices higher has led to speculation that the market could once again experience roller-coaster-like swings.
Mark Malek, Chief Investment Officer at Siebert Financial, said, "Investors dislike market noise," adding, "They crave certainty, but the market is not offering that right now."
Several key economic indicators are scheduled for release this week. On November 25, the Department of Commerce will announce September retail sales data. According to Bloomberg's survey of experts, retail sales are expected to increase by 0.4% from the previous month, a slowdown from August's 0.6%, indicating that the consumer recovery is gradually weakening amid concerns over high inflation, high interest rates, and a slowing labor market. The September Producer Price Index (PPI) will also be released on the same day.
On November 26, data on September durable goods orders, weekly initial jobless claims, and the Federal Reserve's Beige Book, which provides an economic assessment, are scheduled for release.
U.S. Treasury yields remained steady. The 10-year U.S. Treasury yield, a global benchmark, stood at 4.05%, unchanged from the previous session, while the 2-year yield, which is sensitive to monetary policy, was at 3.52%, up 1 basis point (1bp = 0.01 percentage point) from the previous day.
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