FX.co ★ US Stocks Extends Rebound

On Friday afternoon, U.S. stocks continued to gain, with the Dow Jones Industrial Average increasing by over 700 points, and both the S&P 500 and Nasdaq advancing approximately 1.8% each. This upward movement followed comments from New York Federal Reserve President John Williams, who indicated that there might be leeway for monetary policy to shift closer to a neutral stance. This fueled market speculation about a potential interest rate cut in December. The rally was primarily driven by the communication services sector, highlighted by Alphabet's surge of over 4% due to ongoing momentum surrounding its Gemini 3 model and significant investments planned for new data centers. Meta also saw gains, and Intuit's stock rose following optimistic earnings results. Meanwhile, Nvidia experienced a volatile week but increased by 1.3%, amid earnings fluctuations, reports of potential restrictions on H200 chip sales to China by the White House, and renewed optimism among analysts. Other semiconductor companies, such as AMD, attracted increased interest as well. This movement buoyed cyclical stocks that stand to benefit from more accommodative policy, yet the major indexes remained in the red for the week, with the S&P 500 down 1.4%, the Dow falling nearly 1.6%, and the Nasdaq decreasing by 2.6% as investors continue to assess high AI stock valuations and the speed of Federal Reserve policy adjustments.