The stock market kicked off the holiday-shortened week with a solid start, as renewed optimism over a potential December rate cut helped drive broad-based gains, led especially by large-cap stocks.
The market saw a strong tech-led rally on Monday.
The Dow Jones Industrial Average rose 0.4% in Monday’s trading session. The S&P 500 gained 1.55%. The Nasdaq Composite jumped 2.7%. The small-cap Russell 2000 advanced 1.85%.
All of these indexes are now near their 50-day moving averages, particularly the S&P 500 and the Nasdaq. A strong breakout above this level — potentially surpassing Thursday’s intraday highs — could signal a market rebound. However, if the S&P 500 and Nasdaq hit resistance at this level and reverse lower, that would be a negative sign.
Fed Governor Christopher Waller (a voting FOMC member) said he supports a December rate cut, while emphasizing that any further easing should be decided on a meeting-by-meeting basis — a stance that lifted market sentiment today, similar to Friday. According to The Wall Street Journal, San Francisco Fed President Mary Daly (a non-voting FOMC member) also expressed support for a December rate cut.
Investors will receive September retail sales and producer price data at 8:30 a.m. ET.
Meta Considers Deploying Google’s AI Chips in Its Data Centers
Alphabet Inc. (GOOG/GOOGL) shares hit a new intraday high in after-hours trading following news that Meta Platforms, Inc. (META) is considering using Google’s AI chips in its data centers.
Google is in discussions with Meta and other cloud customers about allowing them to use Google’s Tensor Processing Units (TPUs) outside of Google’s own systems — a move that would place Google in more direct competition with NVIDIA Corporation.
Broadcom (AVGO) moved back into a buy zone, supported by its relationship with Google.
Broadcom shares surged 11.1% to 377.96, breaking above the 50-day moving average and the cup-with-handle buy point of 363.24, offering investors an actionable entry. Broadcom has played a key role in supporting the design of Google’s in-house Tensor AI chips.
Tesla stock surged
Tesla shares jumped 6.8% after Elon Musk announced that the company is designing and deploying its own AI chips for both vehicles and data centers.
Musk said Tesla has had an advanced team of chip and board engineers for years, and has already designed and deployed millions of AI chips across Tesla vehicles and the company’s data centers.
These chips enable Tesla to lead in real-world AI and Full Self-Driving.
Tesla’s AI chip roadmap:
• AI3 / HW3 (2019)
• AI4 (2023)
• AI5: design completed in 2026, mass production in 2027
• AI6: production in 2028, supporting full autonomy, robotics, and data-center workloads, with a unified architecture for both training and inference.
Musk emphasized that the new chips will be “world-changing,” boosting road safety and enabling applications such as the Optimus robot.
Tesla’s market cap has reached about $1.30 trillion, placing the company among the largest in both the automotive and technology sectors.
