Investopediaยท2025-11-24 22:45Core Insights - The AI sector experienced a significant rebound, with major companies like Tesla and Alphabet seeing substantial stock gains following positive developments in AI technology [2][4][7]. Market Performance - Major U.S. equity indexes rose, with the Dow increasing by 0.4%, the S&P 500 up by 1.6%, and the Nasdaq surging by 2.7%, driven by expectations of a potential interest rate cut by the Federal Reserve in December [3]. Company Highlights - Alphabet's shares jumped over 6%, reaching an all-time closing high, following the launch of its latest AI model, Gemini 3, which received strong endorsements from industry leaders [4][7]. - Broadcom, a key AI chipmaker and major supplier to Google, saw its stock soar over 11%, marking the best performance in the S&P 500 [5]. - Tesla's shares rose nearly 7% as CEO Elon Musk emphasized the company's AI chip capabilities and future production plans, positioning Tesla as a leader in AI and self-driving technology [5][7]. Industry Trends - The AI trade is gaining momentum again after previous concerns about an AI bubble, with semiconductor stocks benefiting from the renewed interest in AI technologies [2][5]. - Cruise operators, including Carnival Corp., faced declines, with Carnival's shares dropping nearly 7% ahead of its upcoming earnings report, reflecting broader challenges in the cruise industry [6][8].