U.S. stock markets rose on Monday, driven by a surge in tech stocks and renewed expectations of a December interest rate cut by the Federal Reserve. The S&P 500 gained 1.6%, or 108 points, the Dow Jones Industrial Average rose 0.6% (294 points), and the Nasdaq Composite soared 2.7%—its largest intraday gain since spring. The rally was fueled by strong performance from AI-focused companies, with Alphabet jumping 5.5% after positive reception of its new Gemini AI model. Nvidia, a key AI chipmaker, added 2.1% as investors continue to bet on the long-term potential of artificial intelligence, despite growing concerns about a possible tech bubble. The market’s momentum came amid heightened uncertainty about the Federal Reserve’s next move. Traders now see an 80% chance of a rate cut at the December 10 meeting, up from 41% just days earlier, according to CME FedWatch data. This shift reflects optimism that inflation may be cooling, though the Fed remains cautious, with some officials warning against cutting rates while inflation remains above the 2% target. The upcoming release of September’s wholesale inflation data on Tuesday is expected to be a key test, with economists forecasting a 2.6% year-over-year increase—unchanged from August. A higher-than-expected number could delay a rate cut, while a lower reading would strengthen the case for easing. Despite the recent volatility, the S&P 500 remains within 2.8% of its all-time high, set last month. Markets have been highly sensitive in recent weeks, with sharp intraday swings as investors grapple with interest rate uncertainty and the massive capital inflows into AI. The rally on Monday was not without hesitation—initial gains of 1% were quickly pared before the market regained strength, underscoring the market’s fragility. In other news, U.S.-listed shares of Danish drugmaker Novo Nordisk fell 5.8% after it announced that its Alzheimer’s drug failed to slow disease progression in a clinical trial. Grindr shares dropped 9.9% after the company ended merger talks with two major investors, citing concerns over the financing of the proposed deal. The company’s board has formed a special committee to review the situation. Global markets showed mixed results. In Asia, Hong Kong’s Hang Seng index rose 2%, boosted by a 4.7% surge in Alibaba, which reported strong demand for its updated Qwen AI app. Alibaba is set to report earnings on Tuesday. European markets followed a similar pattern, finishing mixed after a volatile session in Asia. In the bond market, Treasury yields remained relatively stable. The 10-year Treasury yield edged down to 4.04% from 4.06% late Friday, reflecting cautious investor sentiment. Bitcoin continued its rollercoaster ride, trading near $87,600 after fluctuating between $82,000 and $94,000 over the past week. The cryptocurrency has lost over $700 billion in market value since peaking near $125,000 in early October and is now at its lowest level since April. With Thanksgiving closing U.S. markets on Thursday and the holiday shopping frenzy approaching, investors are bracing for more volatility. The week ahead will be critical, as economic data, corporate earnings, and Fed signals converge to shape market direction. While AI enthusiasm remains strong, the broader economic outlook—particularly inflation and monetary policy—will ultimately determine whether the rally holds.