Stocks rally on rising hopes for December rate cut and renewed AI enthusiasm

Market Overview - Stocks experienced a rally on Monday, with the S&P 500 increasing by 1.6% and the Nasdaq Composite rising by 2.7%, marking its best performance since May [1] - The rally was influenced by comments from Federal Reserve officials regarding potential interest rate cuts [1] Federal Reserve Insights - Mary Daly, president of the Federal Reserve Bank of San Francisco, expressed support for lowering interest rates due to concerns about the "vulnerable" labor market [2] - Federal Reserve Governor Christopher Waller also highlighted labor market concerns and advocated for a rate cut at the next meeting [3] - Following supportive comments from New York Fed President John Williams, the probability of a rate cut surged to around 60%, with current odds exceeding 85% according to CME Group's FedWatch [4] Impact on Technology Sector - The technology sector saw a significant rebound, with major companies like Apple and Nvidia rising approximately 2%, Amazon increasing by 2.5%, and Alphabet surging by 6.3% following the announcement of a new AI model, Gemini 3 [5] - Chipmakers involved in AI devices and services also experienced strong gains, with Broadcom rising over 11%, Micron increasing by 8%, and AMD gaining 5.5% [6]