[New York Stock Exchange] All Major Indices Rise as 'AI Rally' Reignites... Alphabet Soars 6.3%

Positive Reviews for Google’s “Gemini 3” Ignite New Tech Stock Rally Led by Alphabet
Fed Governor Waller Says “I Support a December Rate Cut”... Investor Sentiment Rebounds
Concerns Over Reduced Trading Volume and Increased Volatility Due to Thanksg

All three major U.S. stock indices closed higher on November 24 (local time), ahead of the Thanksgiving holiday. Although the stock market had seen a correction earlier this month amid skepticism over the artificial intelligence (AI) rally, a renewed wave of buying in AI-related stocks, led by Google’s parent company Alphabet, triggered a strong rebound. Alphabet soared more than 6% on the day.

Traders are working on the floor of the New York Stock Exchange (NYSE) in the United States. Photo by AFP

On the New York Stock Exchange, the blue-chip Dow Jones Industrial Average closed at 46,448.27, up 202.86 points (0.44%) from the previous session. The large-cap S&P 500 Index rose 102.13 points (1.55%) to 6,705.12, while the tech-heavy Nasdaq Index surged 598.922 points (2.69%) to close at 22,872.005.

By stock, Alphabet jumped 6.28%. The latest AI model “Gemini 3,” announced by Google on November 18, received favorable reviews, fueling expectations for AI competitiveness and driving buying momentum. Broadcom soared 11.1%, while Micron and AMD climbed 7.99% and 5.53%, respectively. Palantir also gained 4.78%. Nvidia rose 2.05%, buoyed by both Google’s AI rally and news that the U.S. government is considering resuming exports of advanced AI chips to China. Tesla surged 6.82% after CEO Elon Musk announced that the development of its proprietary AI chip “A15” is in the final stages, and that work has begun on the “A16.”

This is a complete reversal from last week. The New York stock market struggled last week due to concerns over an overheated AI investment trend. The Dow Jones fell 2%, while the S&P 500 and Nasdaq Index dropped 2% and 3%, respectively.

Increased expectations for a rate cut next month are also supporting the Alphabet-led AI rally. Christopher Waller, a member of the U.S. Federal Reserve Board of Governors, said in a Fox News interview on the same day, “My concerns are mainly about the labor market, which is related to our dual mandate,” adding, “So I support a rate cut at the next meeting.” Following New York Federal Reserve President John Williams’ suggestion on November 21 of a possible short-term rate cut, Waller’s remarks further heightened market expectations for a rate cut.

Wall Street’s outlook for the stock market remains divided. While some expect further gains, many also believe that volatility will persist for the time being.

Michael Ball, a strategist at Bloomberg, said, “U.S. stocks started from an oversold position as the market’s trading hours are shortened due to the Thanksgiving holiday,” adding, “If recent volatility subsides and market participation expands, there is a high possibility of a sharp rally.”

On the other hand, Merisa Brown, Managing Director of Investment Decision Research at SimCorp, commented, “It’s good news for Alphabet and its investors, but it’s always concerning when a single stock is leading the market,” adding, “I can’t be confident about a broad market rally, and I don’t think Alphabet will continue to drive the market for the next few days.”

Mark Malek, Chief Investment Officer at Siebert Financial, analyzed, “Investors dislike market noise,” adding, “They crave certainty, but the current market does not provide that certainty.”

Since the market will be closed for Thanksgiving on November 27 and will close early at 1 p.m. on November 28, trading volume is expected to decrease. Some analysts warn that, with no clear catalysts to drive stock prices higher, the market could experience another rollercoaster ride.

Concerns over an overheated AI investment trend also persist. On the day, Michael Burry-the real-life figure behind the movie “The Big Short” and the investor who predicted the 2008 global financial crisis-launched a new blog called “Cassandra Unchained” on the paid newsletter platform Substack to share his pessimistic outlook on the AI market. He recently compared the current AI boom to the dot-com bubble of the 1990s, arguing that, just as the IT bubble burst in the 2000s, AI investments are showing clear signs of a bubble.

Investors are also paying close attention to major economic indicators scheduled for release this week.

The Department of Commerce will release retail sales data for September on November 25. 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%. This suggests that the recovery in consumer spending is gradually weakening amid concerns over high inflation, high interest rates, and a slowdown in the labor market. The Producer Price Index (PPI) for September 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 economic assessment report, the “Beige Book,” are scheduled for release.

U.S. Treasury yields are trending downward. The benchmark 10-year U.S. Treasury yield stands at 4.02%, while the 2-year yield, which is sensitive to monetary policy, is at 3.50%, down 3 basis points (1bp = 0.01 percentage point) and 1 basis point, respectively, from the previous day.