U.S. Stocks Surge as AI Enthusiasm Boosts Market

New York, NY – U.S. stocks rebounded strongly on Monday, November 24, 2025, as the S&P 500 jumped amid renewed enthusiasm for artificial intelligence stocks. Investors grew more confident that the Federal Reserve would lower interest rates in December.

The S&P 500 rose 1.5%, closing at 6,705.12, while the tech-heavy Nasdaq Composite surged 2.7% to 22,872.01. The Dow Jones Industrial Average added 0.4%, finishing at 46,448.27. This marks one of the S&P 500’s strongest days since summer and its second consecutive solid gain.

As trading commenced, the S&P 500 gained about 1% early on. The Nasdaq was up approximately 1.7%, and the Dow rose by 144 points, according to Associated Press data. Tech stocks contributed significantly to the market’s momentum as traders returned to growth stocks linked to AI following recent volatility.

Monday’s trading activity contrasted sharply with previous sessions that had been impacted by tariff news and concerns over a potential AI bubble. “Big tech and AI were back in the driver’s seat,” remarked one analyst as market confidence returned.

The Nasdaq’s 2.7% gain was the biggest one-day increase it has seen in approximately six months, while the S&P 500’s rise was notably focused on large-cap tech stocks, including the so-called “Magnificent Seven” – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. These companies are largely credited with driving index-level profit growth.

With recent signals from the Federal Reserve indicating a likely interest rate cut, investors have been encouraged to invest in rate-sensitive areas. Speeches from Fed officials, including Governor Christopher Waller and New York Fed President John Williams, have reinforced these expectations.

While strategists warn that lower rates do not guarantee stronger growth, the S&P 500’s surge suggests that investors are optimistic about supportive monetary policy outweighing recession concerns for the time being.

The earnings backdrop also remains strong, with technology, financials, and utilities showing significant growth. Third-quarter earnings reflect robust profit margins, which have risen despite rising expenses.

Major banks have recently adjusted their forecasts for the S&P 500, with Deutsche Bank projecting the index might reach 8,000 by the end of 2026. Meanwhile, HSBC and Morgan Stanley also hold bullish targets of 7,500 and 7,800, respectively.

While the rally was mainly driven by major tech companies, there was a notable improvement in market breadth, encouraging traders as more sectors started to perform well.

Meanwhile, S&P Dow Jones Indices announced on Monday that SanDisk Corp. would be added to the S&P 500, replacing Interpublic Group. This change will take effect before the market opens on Friday, November 28.

As the market reacts to these catalysts, investors look ahead to see how the S&P 500 will respond and what developments may follow in the coming weeks.