Traders work on the floor of the New York Stock Exchange (NYSE) on November 21, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
Stock prices rose on Monday due to the following factors: alphabetas the market recovered heading into the Thanksgiving holiday week after a slide that took the air out of this year’s artificial intelligence bull market.
of S&P500 Although it increased by 1.5%, Nasdaq Composite It rose by 2.6%. of Dow Jones Industrial Average It rose by 216 points (0.5%).
Alphabet stock rose on Monday as investors grew optimistic about the company’s place in the AI race. Last week, Google announced its upgraded AI model Gemini 3, almost eight months after Gemini 2.5 was announced. The stock had previously risen 6%.
The excitement surrounding Alphabet has spread to other companies in the AI industry. broadcom While it jumped 11%, micron technology Increased by 8%. Palantir Technologies and AMD They each popped 6%. meta, Nvidia and Amazon also progressed.
“It’s great for Alphabet and Alphabet investors, but it’s always concerning when there’s one stock that’s driving the market higher. We’re not necessarily looking at broad improvements,” said Melissa Brown, managing director of investment decision research at SimCorp. “I don’t see that as a sustainable force that will drive the market up for many days to come.”
Stocks rose, building on a strong rebound in stocks that began Friday after the New York Fed president left the door open to a rate cut in December. Major stock averages remain significantly lower since the start of the month, pressured by the very high valuation reviews across artificial intelligence stocks that drove the market rally in 2025.
The S&P 500 fell about 2% last week and is now down about 2% for November. The Nasdaq, which fell nearly 3% last week, has fallen more than 3% this month. The Dow Jones Industrial Average (30 stocks) fell about 2% last week and is down more than 2% since the beginning of the month.
The last period of November may not be an easy one. Trading volumes are expected to decline in the coming days, and volatility could rise as there is little meaningful triggering ahead of the Fed’s December policy meeting. Brown said that if future economic data releases such as September US retail sales and September producer price index, which will be released on Tuesday, indicate a “stagflation environment”, it could be a factor.
“Markets may continue to be OK, but when sentiment is very negative, bad news tends to be exaggerated,” he told CNBC. “When you add to that the environment of lower trading volumes, I think the impact of any bad news is probably doubled.”
The stock market will be closed Thursday for Thanksgiving and will close early Friday at 1 p.m. ET.
Correction: September retail sales and producer price index reports are scheduled to be released on Tuesday. Previous versions listed the month incorrectly.
