US equities opened the shortened Thanksgiving week strongly, extending Friday’s rebound as policymakers stoked optimism for a December interest-rate cut.
The Nasdaq Composite surged over 2.5%, the S&P 500 climbed more than 1.4%, and the Dow Jones Industrial Average added 0.5%, with tech names leading the charge. Nvidia, Alphabet, and Tesla were among the top performers, helping offset November’s earlier pullback in AI-driven stocks.
Fed officials Christopher Waller and John Williams both indicated that easing may be possible next month, lifting bets on a December cut. CME FedWatch currently prices in 79% odds of a rate reduction. Delayed US economic data this week, including September retail sales, producer prices, and November consumer confidence, will shape market expectations further.
Trade discussions also remain in focus, with the US and EU holding their first talks since July. Markets are weighing the potential impact of a Supreme Court ruling on the legality of existing tariffs, while the Commerce Department and US Trade Representative prepare contingency plans.
Gold climbed more than 1% late Monday, trading around $4,133 by 20:30 GMT, supported by rising rate-cut expectations and lingering economic uncertainty. Fed signals that rates could fall “in the near term” without endangering inflation goals have boosted the precious metal, which tends to benefit from lower yields and geopolitical or economic instability.
Bitcoin also bounced, trading above $88,000 after dipping near $80,000 late last week, signaling some calm in crypto markets.