Financial Markets                      11/24 15:34

   

   NEW YORK (AP) -- The U.S. stock market rallied on Monday, at the start of a 
week with shortened trading because of the Thanksgiving holiday.

   The S&P 500 climbed 1.5% for one of its best days since the summer and added 
to its jump from Friday, finding some strength following a shaky few weeks. The 
Dow Jones Industrial Average rose 202 points, or 0.4%, and the Nasdaq composite 
jumped 2.7%.

   Stocks got a lift from rising hopes that the Federal Reserve will cut its 
main interest rate again at its next meeting in December, a move that could 
boost the economy and investment prices.

   The market also benefited from strength for stocks caught up in the 
artificial-intelligence frenzy. Alphabet, which has been getting praise for its 
newest Gemini AI model, rallied 6.3% and was one of the strongest forces 
lifting the S&P 500. Nvidia rose 2.1%.

   Monday's gains followed sharp swings in recent weeks, not just day to day 
but also hour to hour, caused by uncertainty about what the Fed will do with 
interest rates and whether too much money is pouring into AI and creating a 
bubble. All the worries are creating the biggest test for investors since an 
April sell-off, when President Donald Trump shocked the world with his 
"Liberation Day" tariffs.

   Despite all the recent fear, the S&P 500 remains within 2.7% of its record 
set last month.

   "It's reasonable to expect that stocks will experience periods of pressure 
from time to time, which, historically, is quite healthy for longer-term 
strength," Anthony Saglimbene, Ameriprise chief market strategist, wrote in a 
note to investors.

   Several more tests lie ahead this week for the market, which could create 
more swings, though none loom quite as large as last week's profit report from 
Nvidia or the delayed jobs report from the U.S. government for September.

   One of the biggest tests will arrive Tuesday, when the U.S. government will 
deliver data showing how bad inflation was at the wholesale level in September.

   Economists expect it to show a 2.6% rise in prices from a year earlier, the 
same inflation rate as August. A worse-than-expected reading could deter the 
Fed from cutting its main interest rate in December for a third time this year, 
because lower rates can worsen inflation. Some Fed officials have already 
argued against a December cut in part because inflation has stubbornly remained 
above their 2% target.

   Traders are nevertheless betting on a nearly 85% probability that the Fed 
will cut rates next month, up from 71% on Friday and from less than a coin 
flip's chance seen a week ago, according to data from CME Group.

   U.S. markets will be closed on Thursday for the Thanksgiving holiday. A day 
later, it's on to the rush of Black Friday and Cyber Monday.

   On Wall Street, U.S.-listed shares of Danish drugmaker Novo Nordisk fell 
5.6% Monday after it reported that its Alzheimer's drug failed to slow 
progression of the disease in a trial.

   Grindr dropped 12.1% after saying it's breaking off talks with a couple of 
investors who had offered to buy the company, which helps its gay users connect 
with each other. A special committee of the company's board of directors said 
it had questions about the financing for the deal by the investors, who 
collectively own more than 60% of Grindr's stock.

   All told, the S&P 500 rose 102.13 points to 6,705.12. The Dow Jones 
Industrial Average climbed 202.86 to 46,448.27, and the Nasdaq composite jumped 
598.92 to 22,872.01.

   Bitcoin, meanwhile, continued it sharp swings. It was sitting around $89,000 
after bouncing between $82,000 and $94,000 over the last week. It was near 
$125,000 last month.

   In stock markets abroad, indexes were mixed in Europe and Asia.

   Hong Kong's Hang Seng jumped 2% for one of the world's biggest moves. It got 
a boost from a 4.7% leap for Alibaba, which has reported strong demand for its 
updated Qwen AI app. Alibaba is due to report earnings on Tuesday.

   In the bond market, Treasury yields eased a bit. The yield on the 10-year 
Treasury fell to 4.03% from 4.06% late Friday.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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