US stocks climb to open Thanksgiving week, with a resurgent tech sector helping Wall Street shake off some of November’s nerves and pull major indexes higher.
Key Points
By mid-morning Monday in New York, investors were leaning back into risk after last week’s slump, even as they continued to weigh worries over artificial intelligence, stretched valuations and the Federal Reserve’s next move on interest rates.
The mood on the floor was cautiously optimistic rather than euphoric, but the early tone suggested traders are preparing for a data-heavy holiday week with a bit more confidence than they had just days ago.
Tech Rebound Helps US Stocks Climb Into Thanksgiving Week
US stocks climb as buyers step back into technology names that were hit hard in recent sessions.
The S&P 500 Index was up about 1% at 10:05 a.m. in New York, extending gains from Friday’s rebound. The tech-heavy Nasdaq 100 rose 1.9%, outpacing the broader market as investors returned to growth shares that had fallen out of favor earlier in the month.
Market anxiety, while still present, eased somewhat. The Cboe Volatility Index hovered around 22, signaling cooler nerves compared with the sharp swings that marked parts of November.
Outside stocks, Bitcoin started the week on the back foot, continuing a prolonged selloff that has left the token on course for its worst month since 2022. That contrast underscored how US stocks climb even as some risk assets remain under pressure.
November Pullback and the “Wall of Worry”
The recent advance comes after a tough stretch for equities.
November is on track to break a run of monthly gains for both the S&P 500 and Nasdaq 100. Persistent concerns about lofty valuations, the durability of the AI-driven rally and the Fed’s rate path have pushed many investors into a risk-off stance during much of the month.
Yet some market watchers see the pullback as more normal than alarming.
David Laut, chief investment officer at Kerux Financial, said November’s retreat “paves the way for a market rebound and rally in December.” He noted that many fears — from artificial intelligence to a “cratering” job market — have not actually materialized, suggesting the recent weakness looks more like a traditional pause than the start of a deeper correction.
According to Laut, the fact that so many investors remain nervous is itself a constructive signal. He described the situation as a market climbing a “wall of worry,” a classic pattern where US stocks climb even as headlines highlight risks. To him, that is “a tell tale sign that the overall bull market is intact and likely here to stay for the foreseeable future.”
Tech Jitters, Nvidia’s Strength and Analyst Reactions
The tech sector has been at the center of both the anxiety and the rebound.
Last week, many technology stocks struggled despite a strong revenue forecast from Nvidia Corp., one of the key names in the AI boom. That disconnect — solid corporate news alongside falling prices — added to questions about whether the sector’s rally had run too far too fast.
But Friday marked a turning point, with tech beginning to snap back. That recovery continued on Monday as US stocks climb and growth shares tried to build on the renewed momentum.
In a note published Monday, Wedbush Securities analyst Daniel Ives urged investors not to overreact to the recent turbulence. He acknowledged that there had been some “rough and brutal” days that put the tech bull market under a harsh spotlight, but he framed the decline as a “short-lived mini panic moment” rather than the start of a lasting downturn.
Together, the renewed interest in tech and the analyst calls for calm helped reinforce the idea that the sector’s leadership in the broader market remains intact, at least for now.
Fed Rate-Cut Hopes Shape the Thanksgiving Week Outlook
As US stocks climb, the Federal Reserve remains a central driver of sentiment.
With the Fed’s December meeting approaching, traders are searching for clearer signals on whether policymakers will deliver another interest-rate cut. A batch of September economic data is set to be released following the end of the record-breaking government shutdown, though investors know those figures will be somewhat dated.
Even so, comments from a key Fed official late last week added fuel to expectations for easier policy. New York Fed President John Williams said Friday that he sees room for the central bank to lower rates again in the near term amid signs of softness in the labor market.
Strategists at Evercore ISI — Krishna Guha and Marco Casiraghi — pointed out on Monday that Fed leaders have made no public effort to “clarify” how markets interpreted Williams’ remarks. In their view, that silence is meaningful.
They wrote that Williams’ comments were likely approved by Fed Chair Jerome Powell and signal that the Fed leadership “expects to push through a December rate cut.” That possibility is one reason US stocks climb despite the lingering concerns that have dogged markets through much of November.
Stock Movers Show Crosscurrents Beneath the Surface
Even on a day when US stocks climb broadly, individual names moved on their own catalysts.
Morgan Stanley shares gained after analysts at Wolfe Research upgraded the Wall Street firm to “outperform.” The call added to optimism around the stock and highlighted how broker research can still sway sentiment in a crowded financial sector.
Biogen Inc. also jumped after Novo Nordisk A/S reported that a pill version of its diabetes and weight-loss drug Ozempic failed to slow the progression of Alzheimer’s disease. The update shifted expectations within the competitive landscape for Alzheimer’s treatments, giving Biogen a boost.
Not all the news was positive. Performance Food Group Co. fell after US Foods Holding Corp. announced it was no longer pursuing a combination with the company. The move signaled that dealmaking prospects in that corner of the food distribution industry had cooled, at least for now.
These crosscurrents show that while US stocks climb at the index level, stock picking and company-specific developments remain crucial to returns.
What Monday’s Move Signals for the Rest of the Year
The early Thanksgiving week rally does not erase November’s challenges, but it does shift the tone as investors head into the final stretch of the year.
If fears over AI, the labor market, and interest rates continue to ease — or at least fail to worsen — the recent pullback may in hindsight look like a pause within a longer bull run rather than the start of a bear phase. That is the scenario outlined by Laut and echoed by others who see the “wall of worry” as a healthy backdrop for further gains.
At the same time, markets remain sensitive to every new data point and Fed comment. A clearer picture of the pace of rate cuts, combined with incoming economic reports, will help determine whether US stocks climb further into December or slip back into choppier trading.
For now, the combination of a tech rebound, steadier volatility, and revived rate-cut hopes has given bulls something to cheer as the holiday week begins — and set the stage for a closely watched finish to the year on Wall Street.
FAQ’s
Why did US stocks climb to start Thanksgiving week?
US stocks climbed as technology shares rebounded from last week’s slump and investor anxiety eased. Hopes for a potential Fed rate cut and calmer volatility also supported a more risk-on tone.
How did tech stocks impact the market rally?
Tech led the gains, with the Nasdaq 100 outpacing the S&P 500 as investors bought back into growth names. The move followed analyst calls that the recent tech selloff was a short‑lived “mini panic,” not the end of the bull run.
What role does the Federal Reserve play in this market move?
Expectations for a possible December rate cut grew after New York Fed President John Williams signaled room for further easing. Strategists say the lack of pushback from Fed leaders suggests a cut is now more likely.
Is the November pullback a sign of a deeper correction?
Several strategists view the November pullback as a normal consolidation in an ongoing bull market. With fears around AI, jobs and rates not fully materializing, they see it as a pause rather than the start of a major downturn.
