Newscasts - Wall Street ends higher on tech rebound, rising rate cut bets

Carvana Co

24/11/2025 23:55

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Source: 'Reuters - Business videos'

Description: Wall Street stocks closed higher on Monday, extending Friday's rally as increased odds that the U.S. Federal Reserve will lower its Fed funds target rate in December helped investors look past concerns about inflated tech valuations. Alex Cohen has more.

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Video Transcript:

US stocks closed higher across the board Monday, with the Dow climbing 0.4%, the S&P 500 adding about 1.5%, and the NASDAQ rising more than 2.5%. Increased odds that the Federal Reserve will lower its Fed Funds target rate in December helped investors look past concerns about inflated tech valuations. All of the Magnificent Seven group of artificial intelligence-related momentum stocks finished up, with Tesla advancing nearly 7%. Shana Orczyk Sissel, Founder and CEO of Banrion Capital Management, says that despite Monday's tech rebound, uncertainty about the timing of when AI stocks will see a return on their huge capital investments will likely continue to weigh on investors.

I think the market is looking for some clarity. We have had a lot of very large companies that have a massive impact on the market, NVIDIA being the biggest one, report earnings recently. And while those earnings reports have not been disappointing per se, I think there's a lot of questions about the monetization of AI. And whether or not that is near term going to happen or if it's going to be a longer wait.

A spate of economic reports belatedly released after the recent six-week government shutdown hinted at labor market weakness and stubbornly elevated inflation. That bad-news-is-good-news dynamic has bolstered investor optimism that the Fed will implement its third interest rate cut of 2025 at the conclusion of its December meeting. Other stocks on the move included Novo Nordisk. US-listed shares of the Danish drug company dropped 5.5% after an oral version of its semaglutide drug failed to meet its main goal in late-stage trials, testing whether the medicine can slow cognitive decline in Alzheimer's patients. And shares of used-car seller Carvana jumped nearly 7% after broker Wedbush upgraded the stock to 'outperform' from 'neutral'.