Traders work on the American Stock Exchange (AMEX) floor of the New York Stock Exchange (NYSE) on Monday, November 24, 2025 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
of Nasdaq Composite A rally in artificial intelligence stocks and renewed hopes for a Federal Reserve rate cut sent stocks lower on Tuesday, a win on Wall Street.
The tech-heavy benchmark fell 0.3%. S&P500 It rose by 0.2%. of Dow Jones Industrial Average It outperformed, up 335 points (0.7%).
Nvidia The stock price fell more than 4% after the Information reported, citing sources. meta platform was considering spending billions of dollars on of the alphabet AI chip. Alphabet stock rose nearly 1% on the news.
The average of the three major stocks traded steadily on Monday. On Monday, the S&P 500 rose about 1.6% and the Nasdaq rose 2.7%, hitting its highest since May 12 as major tech stocks rebounded after a tough month for the sector. Meanwhile, the Dow Jones Industrial Average closed up more than 200 points, or 0.4%.
Google’s parent company Alphabet was a standout stock in the pre-market session, closing 6.3% higher, hitting a new all-time high. chip manufacturer broadcom It became the S&P 500’s biggest gainer after its stock soared more than 11%. Investors have rallied behind both companies, which are linked through their high-performance application-specific chip (ASIC) businesses.
Stocks have recovered some from the decline from the previous week, but the three U.S. indexes are still following a down month. Much of this year’s rally has been driven by AI stocks, with investors questioning tech stock valuations and whether the market will rally at the end of the year or if momentum will reverse.
The S&P 500 index fell more than 1% in November, and the Nasdaq fell more than 3%. The 30-stock Dow Jones Industrial Average has fallen more than 1% since the beginning of the month.
“We saw a lot of outflows, but it really started at the end of October, because liquidity was coming out of the market,” Abby Yoder, U.S. equity strategist at JPMorgan Private Bank, said Monday on CNBC’s “Closing Bell” about the recent pullback.
“But within this tech-driven movement around AI and tech-related names, there was still a really solid fundamental background in terms of the AI story and the AI spending story,” Yoder continued. “I think things will progress smoothly toward the end of the year, but there will be a little more scrutiny.”
Separately, traders continue to monitor news that could impact the Federal Reserve’s future monetary policy decisions. According to the CME FedWatch tool, the market is pricing in a more than 80% chance that the Fed will cut interest rates by a quarter of a percentage point in December.
Those odds have skyrocketed since New York Fed President Williams said Friday there was room for rate cuts “in the near term.” San Francisco Fed President Mary Daly told the Wall Street Journal on Monday that she supports lowering rates, citing concerns about the labor market.
