What Happened?
A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Electronic Components & Manufacturing company Amphenol (NYSE:APH) jumped 4.7%. Is now the time to buy Amphenol? Access our full analysis report here, it’s free for active Edge members.
- Digital Media & Content Platforms company Rumble (NASDAQ:RUM) jumped 12.7%. Is now the time to buy Rumble? Access our full analysis report here, it’s free for active Edge members.
- Electronic Components & Manufacturing company Coherent (NYSE:COHR) jumped 8.7%. Is now the time to buy Coherent? Access our full analysis report here, it’s free for active Edge members.
- Electronic Components & Manufacturing company TTM Technologies (NASDAQ:TTMI) jumped 9.2%. Is now the time to buy TTM Technologies? Access our full analysis report here, it’s free for active Edge members.
- Satellite Telecommunication Services company Globalstar (NASDAQ:GSAT) jumped 6.6%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Rumble (RUM)
Rumble’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. But moves this big are rare even for Rumble and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 6.8% on the news that comments from a key Federal Reserve official hinted at a potential interest rate cut in December.
John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.
Rumble is down 47.5% since the beginning of the year, and at $6.51 per share, it is trading 60% below its 52-week high of $16.27 from December 2024.
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