Nov. 24, 2025, 3:54 PM EST / Updated Nov. 24, 2025, 4:12 PM ESTBy Steve KopackStocks rallied on Monday as investors digested fresh comments from top Fed officials and AI companies rebounded from last week.The S&P 500 ended the day higher by 1.6%. The Nasdaq Composite wrapped the trading day up 2.7%, its best day since May. The S&P 500 came within striking distance of achieving the same feat earlier in the session.The rally came after two top Fed officials voiced support for an interest rate cut at the central bank’s next rate-setting meetings, slated for Dec. 9 and 10.Mary Daly, president of the Federal Reserve Bank of San Francisco, told The Wall Street Journal that she supported lowering rates due to the “vulnerable” labor market. While Daly is not a current voting member of the Fed’s Open Market Committee,” she has rarely taken a public position at odds with Fed Chair Jerome Powell,” the Journal noted.Federal Reserve Governor Christoper Waller, who has a permanent vote on interest rates, also voiced concern about the labor market on Fox Business Network. “My concern is mainly [the] labor market in terms of our dual mandate,” Waller said. “So I’m advocating for a rate cut at the next meeting.” While Waller has been advocating for a cut for months, his and Daly’s views come as markets try to work out how the upcoming Fed meeting will go. In recent days, markets viewed a rate cut as unlikely amid a wave of cautious comments from Fed officials. That all changed on Friday, when New York Fed President John Williams signaled his support for a cut and sent the chance of a rate cut soaring to around 60%. Williams also serves as vice chair of the Fed’s rate-setting committee.New company aims to integrate AI with human work03:09As of Monday afternoon, odds of a cut sat above 85%, according to the CME Group’s FedWatch, which tracks bets that traders place in the futures market on where they see interest rates going.Markets are closely tracking Fed officials because lower interest rates tend to lower borrowing costs, boosting corporate profits and therefore stock market returns.Meanwhile, a sharp rebound in megacap tech stocks also pushed indexes higher. Apple and Nvidia rose around 2%, Amazon shares jumped 2.5% and Alphabet shares surged 6.3%. Last week, Alphabet’s Google division announced a new AI model called Gemini 3.Chipmakers for AI devices and services also saw broad enthusiasm. Broadcom traded higher by more than 11% while Micron jumped 8% and AMD popped 5.5%. Steve KopackSteve Kopack is a senior reporter at NBC News covering business and the economy.