Another rally for Alphabet leads the US stock market higher
[November 25, 2025] By
STAN CHOE
NEW YORK (AP) — The U.S. stock market rallied on Monday, at the start of
a week with shortened trading because of the Thanksgiving holiday.
The S&P 500 climbed 1.5% for one of its best days since the summer and
added to its jump from Friday, finding some strength following a shaky
few weeks. The Dow Jones Industrial Average rose 202 points, or 0.4%,
and the Nasdaq composite jumped 2.7%.
Stocks got a lift from rising hopes that the Federal Reserve will cut
its main interest rate again at its next meeting in December, a move
that could boost the economy and investment prices.
The market also benefited from strength for stocks caught up in the
artificial-intelligence frenzy. Alphabet, which has been getting praise
for its newest Gemini AI model, rallied 6.3% and was one of the
strongest forces lifting the S&P 500. Nvidia rose 2.1%.
Monday’s gains followed sharp swings in recent weeks, not just day to
day but also hour to hour, caused by uncertainty about what the Fed will
do with interest rates and whether too much money is pouring into AI and
creating a bubble. All the worries are creating the biggest test for
investors since an April sell-off, when President Donald Trump shocked
the world with his “Liberation Day” tariffs.
Despite all the recent fear, the S&P 500 remains within 2.7% of its
record set last month.
“It’s reasonable to expect that stocks will experience periods of
pressure from time to time, which, historically, is quite healthy for
longer-term strength,” Anthony Saglimbene, Ameriprise chief market
strategist, wrote in a note to investors.
Several more tests lie ahead this week for the market, which could
create more swings, though none loom quite as large as last week’s
profit report from Nvidia or the delayed jobs report from the U.S.
government for September.
One of the biggest tests will arrive Tuesday, when the U.S. government
will deliver data showing how bad inflation was at the wholesale level
in September.
Economists expect it to show a 2.6% rise in prices from a year earlier,
the same inflation rate as August. A worse-than-expected reading could
deter the Fed from cutting its main interest rate in December for a
third time this year, because lower rates can worsen inflation. Some Fed
officials have already argued against a December cut in part because
inflation has stubbornly remained above their 2% target.
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Trader Michael Capolino works on the floor of the New York Stock
Exchange, Monday, Nov. 24, 2025. (AP Photo/Richard Drew)
 Traders are nevertheless betting on
a nearly 85% probability that the Fed will cut rates next month, up
from 71% on Friday and from less than a coin flip’s chance seen a
week ago, according to data from CME Group.
U.S. markets will be closed on Thursday for the Thanksgiving
holiday. A day later, it’s on to the rush of Black Friday and Cyber
Monday.
On Wall Street, U.S.-listed shares of Danish drugmaker Novo Nordisk
fell 5.6% Monday after it reported that its Alzheimer’s drug failed
to slow progression of the disease in a trial.
Grindr dropped 12.1% after saying it’s breaking off talks with a
couple of investors who had offered to buy the company, which helps
its gay users connect with each other. A special committee of the
company’s board of directors said it had questions about the
financing for the deal by the investors, who collectively own more
than 60% of Grindr’s stock.
All told, the S&P 500 rose 102.13 points to 6,705.12. The Dow Jones
Industrial Average climbed 202.86 to 46,448.27, and the Nasdaq
composite jumped 598.92 to 22,872.01.
Bitcoin, meanwhile, continued it sharp swings. It was sitting around
$89,000 after bouncing between $82,000 and $94,000 over the last
week. It was near $125,000 last month.
In stock markets abroad, indexes were mixed in Europe and Asia.
Hong Kong’s Hang Seng jumped 2% for one of the world’s biggest
moves. It got a boost from a 4.7% leap for Alibaba, which has
reported strong demand for its updated Qwen AI app. Alibaba is due
to report earnings on Tuesday.
In the bond market, Treasury yields eased a bit. The yield on the
10-year Treasury fell to 4.03% from 4.06% late Friday.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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