S&P 500 closes more than 1% higher as Alphabet reignites AI trade: Live updates

Stocks rose on Monday, boosted by Alphabet, as the market rebounded into the Thanksgiving holiday week after a slide that’s knocked the air out of this year’s artificial intelligence bull run.

The S&P 500 increased 1.5%, while the Nasdaq Composite jumped 2.7%. The Dow Jones Industrial Average traded up 187 points, or 0.4%.

Shares of Alphabet saw gains Monday as investors grew optimistic about the company’s standing in the AI race. Google last week announced its upgraded AI model, Gemini 3, a move that comes nearly eight months following its unveiling of Gemini 2.5. The stock was last up 6%.

The enthusiasm surrounding Alphabet extended to other names in the AI trade. Broadcom surged 11%, while Micron Technology grew 8%. Palantir Technologies and AMD each popped 6%. Meta, Nvidia and Amazon also advanced.

“It’s great for Alphabet and investors in Alphabet, but it always concerns me when we have one stock that is leading the market higher. We’re not looking necessarily at a broad-based improvement,” said Melissa Brown, managing director of investment decision research at SimCorp. “That just doesn’t seem to me to be a sustainable force behind driving the market higher over the next however many days.”

Stocks built on a strong rebound that started on Friday, after the head of the New York Federal Reserve left the door open to a December interest rate cut. Major averages have still stumbled sharply since the month began, pressured by a reconsideration of sky-high valuations across artificial intelligence-linked names that had powered much of 2025’s market gains.

The S&P 500 slipped roughly 2% last week, and its November decline now stands at around 2%. The Nasdaq, which shed nearly 3% in the prior week, is down more than 3% for the month. The 30-stock Dow fell about 2% last week and is off more than 2% month to date.

The final stretch of November may be no easier. With trading volumes expected to thin out in the coming days and few meaningful catalysts ahead of the Fed’s December policy meeting, volatility could pick up. Brown noted that any upcoming economic data releases – including September U.S. retail sales and September producer price index data on Tuesday – that signal a “stagflationary environment” could be a driver.

“The market could continue to be okay, but when sentiment is so negative, bad news tends to get exaggerated,” she told CNBC. “When you add on top of that the lower trading volume environment, I think any bad news, maybe the impact is going to be multiplied.”

The stock market is closed on Thursday for Thanksgiving Day, and it shuts down early at 1 p.m. ET on Friday.

Correction: The reports for September retail sales and producer price index are due Tuesday. A previous version misstated the month.