We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed sharply higher on Monday to start the holiday-shortened last week of a volatile November. Artificial intelligence (AI) hyperscalers and infrastructure developers rebounded on the positive news. Moreover, market participants remained enthused following statements of a few top-level Fed officials indicating another interest rate cut in December. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 202.86 points to close at 46,448.27. Notably, 15 components of the 30-stock index ended in positive territory, while 15 finished in negative territory.
The tech-heavy Nasdaq Composite finished at 22,872, climbing 2.7% or 598.92 points due to the strong performance of AI hyperscalers and infrastructure developers. This marked the best daily performance of the tech-laden index since May 12.
The S&P 500 gained 1.6% or 102.13 points to finish at 6,705.12. Nine out of 11 broad-sectors of the broad-market index ended in positive territory while two ended in negative territory. The Technology Select Sector SPDR (XLK), the Utilities Select Sector SPDR (XLU), the Consumer Discretionary Select SPDR (XLY) and the Communication Services Select Sector SPDR (XLC) appreciated 2.4%, 1.1%, 1.3% and 1%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP) fell 1.2%.
The fear gauge, the CBOE Volatility Index (VIX) was down 12.4% to 20.52. A total of 18.32 billion shares were traded on Monday, lower than the last 20-session average of 19.94 billion. Advancers outnumbered decliners on the NYSE by a 2.3-to-1 ratio. On the Nasdaq, a 2.16-to-1 ratio favored advancing issues.
AI Trade Rebounds
On Nov. 18, Internet search engine behemoth Alphabet Inc. (GOOGL - Free Report) unveiled its upgraded AI platform Gemini 3, eight months after the introduction of its Gemini 2.5 model. Gemini is Alphabet’s answer to OpenAI’s ChatGPT. Gemini 3 will require less prompting by users to get the desired results.
On Nov. 24, San Francisco Federal Reserve President Mary Daly told the Wall Street Journal that she will support a rate cut in the upcoming December FOMC (Federal Open Market Committee) meeting. Daly cited risks in the labor market as the main reason to support a rate cut.
On Nov. 21, New York Federal Reserve President John Williams said that he expects another cut of 25 basis-points in the Fed fund rate in the December FOMC. If this happens, it will be the third-rate cut of 25 basis points each in 2025. The existing benchmark lending rate is in the range of 3.75-4%.
Williams said “I view monetary policy as being modestly restrictive, although somewhat less so than before our recent actions. Therefore, I still see room for further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals.”
The NY Fed President believes that labor market weakness is a bigger threat to the economy at present rather than higher inflation concerns. The central bank is scheduled to conduct its last FOMC meeting of this year from Dec. 9 to Dec. 10.
Following these developments, the CME FedWatch shows an 81% probability of a 25-basis-points rate cut in December. This probability was as low as 42.2% last week.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Nov 25, 2025
U.S. stock markets closed sharply higher on Monday to start the holiday-shortened last week of a volatile November. Artificial intelligence (AI) hyperscalers and infrastructure developers rebounded on the positive news. Moreover, market participants remained enthused following statements of a few top-level Fed officials indicating another interest rate cut in December. All three major stock indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 202.86 points to close at 46,448.27. Notably, 15 components of the 30-stock index ended in positive territory, while 15 finished in negative territory.
The tech-heavy Nasdaq Composite finished at 22,872, climbing 2.7% or 598.92 points due to the strong performance of AI hyperscalers and infrastructure developers. This marked the best daily performance of the tech-laden index since May 12.
The S&P 500 gained 1.6% or 102.13 points to finish at 6,705.12. Nine out of 11 broad-sectors of the broad-market index ended in positive territory while two ended in negative territory. The Technology Select Sector SPDR (XLK), the Utilities Select Sector SPDR (XLU), the Consumer Discretionary Select SPDR (XLY) and the Communication Services Select Sector SPDR (XLC) appreciated 2.4%, 1.1%, 1.3% and 1%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP) fell 1.2%.
The fear gauge, the CBOE Volatility Index (VIX) was down 12.4% to 20.52. A total of 18.32 billion shares were traded on Monday, lower than the last 20-session average of 19.94 billion. Advancers outnumbered decliners on the NYSE by a 2.3-to-1 ratio. On the Nasdaq, a 2.16-to-1 ratio favored advancing issues.
AI Trade Rebounds
On Nov. 18, Internet search engine behemoth Alphabet Inc. (GOOGL - Free Report) unveiled its upgraded AI platform Gemini 3, eight months after the introduction of its Gemini 2.5 model. Gemini is Alphabet’s answer to OpenAI’s ChatGPT. Gemini 3 will require less prompting by users to get the desired results.
Following the news, the stock price of Alphabet jumped 6.3%. Additionally, the stock prices of AI chipset developers like Broadcom Inc. (AVGO - Free Report) , Micron Technology Inc. (MU - Free Report) and Advanced Micro Devices Inc. (AMD - Free Report) surged 11.1%, 8% and 5.5%, respectively. The four stocks currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Positive Indications for Rate Cut
On Nov. 24, San Francisco Federal Reserve President Mary Daly told the Wall Street Journal that she will support a rate cut in the upcoming December FOMC (Federal Open Market Committee) meeting. Daly cited risks in the labor market as the main reason to support a rate cut.
On Nov. 21, New York Federal Reserve President John Williams said that he expects another cut of 25 basis-points in the Fed fund rate in the December FOMC. If this happens, it will be the third-rate cut of 25 basis points each in 2025. The existing benchmark lending rate is in the range of 3.75-4%.
Williams said “I view monetary policy as being modestly restrictive, although somewhat less so than before our recent actions. Therefore, I still see room for further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals.”
The NY Fed President believes that labor market weakness is a bigger threat to the economy at present rather than higher inflation concerns. The central bank is scheduled to conduct its last FOMC meeting of this year from Dec. 9 to Dec. 10.
Following these developments, the CME FedWatch shows an 81% probability of a 25-basis-points rate cut in December. This probability was as low as 42.2% last week.