On Monday, the stock markets showed growth as investors reacted positively to recent statements from key figures at the Federal Reserve, as well as the recovery of artificial intelligence-related stocks after a slowdown the previous week. The S&P 500 index closed up 1.6%. The Nasdaq Composite index gained an impressive 2.7%, marking its best performance since May. In the early stages of the session, the S&P 500 was very close to similar figures. This rally was a result of two influential Federal Reserve representatives speaking in favor of reducing interest rates at the central bank’s upcoming meetings scheduled for December 9 and 10. Mary Daly, President of the San Francisco Fed, told The Wall Street Journal that she supports a rate cut, citing job market “vulnerability.” The Journal noted that although Daly does not currently have a vote in the FOMC, her public stance rarely diverges from that of Fed Chair Jerome Powell. Christopher Waller, a member of the Federal Reserve Board of Governors with a permanent vote on rates, also expressed concern about the state of the labor market on Fox Business Network. “My main concern is the labor market in the context of our dual mandate,” Waller stated. “For this reason, I advocate for a rate cut at the next meeting.” Although Waller has been advocating for monetary easing for several months, his position, like Daly’s, came at a time when markets were trying to assess the likely outcome of the upcoming Fed meeting. In recent days, based on a wave of cautious comments from Fed officials, the market considered a rate cut unlikely. The situation changed on Friday when John Williams, President of the New York Fed, endorsed a rate cut, raising the probability of such a move to about 60%. Williams also serves as the Vice Chair of the Fed’s monetary policy committee. New Corporation Aims to Merge AI with Human Labor By midday Monday, according to CME Group’s FedWatch data (an index tracking traders’ futures market expectations for rate movements), the probability of a rate cut exceeded 85%. Markets closely watch the statements of Fed officials because lower rates generally reduce borrowing costs, which benefits corporate profits and, consequently, boosts stock market returns. Simultaneously, a significant rise in the shares of major tech giants also contributed to the strengthening of the indices. Apple and Nvidia shares rose by about 2%, Amazon by 2.5%, and Alphabet by 6.3%. Last week, Alphabet’s Google division unveiled a new artificial intelligence model called Gemini 3. Companies producing chips for AI-powered devices and services also experienced a wave of optimism. Broadcom grew by over 11%, Micron by 8%, and AMD by 5.5%.
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