Stocks Rise on December Rate Cut Expectations and AI Interest

Stocks rallied on Monday as investors responded to comments from Fed officials and a rebound in AI companies, with the S&P 500 rising 1.6% and the Nasdaq Composite up 2.7%. Fed officials Mary Daly and Christopher Waller expressed support for an interest rate cut due to concerns about the labor market, boosting market expectations for a cut at the upcoming meetings. Major tech stocks like Apple, Nvidia, and Alphabet saw significant gains, while chipmakers also benefitted. Odds for a rate cut exceeded 85%, reflecting optimism about lower borrowing costs enhancing corporate profits.

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