American shares started the shortened week with a sharp growth. The index of the technology sector Nasdaq Composite at the end of trading on November 24 soared by 2.7%. This is the sharpest growth of the index for one day since Ma, notes Yahoo Finance.

Shares of AI-related companies were among the leaders of growth. Alphabet shares added more than 6%, closing above the record high of $300 for the first time in history. Broadcom shares rose by 11%, Micron - by 8%, Palantir and AMD added about 5%.

The broad market index S&P 500 rose by 1.6% at the end of the day. The Dow Jones Industrial Average blue-chip index, which includes fewer shares of technology companies, rose 0.4%.

Why stocks are rising

Interest in risk assets is returning to investors as signals that the Federal Reserve may still cut rates in December, Barron's writes. At the end of last week, New York FRB head John Williams said that a rate cut is likely in the near future. Fed Board of Governors member Christopher Waller and San Francisco FRB President Mary Daly said Nov. 24. that they support a rate cut at the December meeting. According to the CME FedWatch Tool, traders now estimate the probability of such a decision at 85%. whereas last week - only 30%.

There are different ways to interpret the state of the economy now, as statistics released with a delay give a mixed picture, BNP Paribas U.S. economist James Egelhof said on Bloomberg Television. "It's a more chaotic process than what we're used to," he noted. - At the same time, we believe Fed chief Jerome Powell wants to keep cutting rates. He has the votes to do so. In our view, the current data give him some cover to make another rate cut and protect the labor market from gradual deterioration."

Context

This trading week will be a short one in the U.S. market. On Thursday, the exchanges will be closed due to Thanksgiving, and on Friday trading will end earlier than usual, which may intensify investors' reaction to any news amid reduced liquidity, CNBC warns.

Low trading volumes are expected in the coming days. Analysts warn that volatility could increase, especially if new data - including retail sales and producer price index for September - point to "stagflationary trends".

This article was AI-translated and verified by a human editor

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