The markets took a deep breath on Monday, November 24, 2025, and exhaled a collective "whew." After a recent slide that had, as some put it, "knocked the air out of this year's artificial intelligence bull run," stocks bounced back. The S&P 500 climbed, the Nasdaq soared, and even the Dow managed a respectable gain. But was this just a temporary reprieve, a dead cat bounce before another plunge? Or something more profound? I think it's the latter, and I'm here to tell you why.
Alphabet's surge, a whopping 6.3% jump sparked by investor optimism surrounding Gemini 3, is the key. We are talking about Alphabet A share traded at all-time highs back to its IPO on Aug. 19, 2004. Think about that for a second—all-time highs. This isn't just a stock price; it's a signal. It's a flashing neon sign that says, "AI is not a fad; it's the future, and Google is leading the charge." Marc Benioff's reaction on X is telling, too. "I'm not going back..." he declared after just two hours with Gemini 3. This is the kind of breakthrough that reminds me why I got into this field in the first place.
But, of course, it's not just about Alphabet. Broadcom, Micron, Palantir, AMD, Meta, Nvidia, Amazon—they all saw gains. This wasn't just a rising tide lifting all boats; it was a surge specifically hitting those companies deeply involved in the AI revolution. Broadcom shares rallied 10.3% on Monday, putting them on pace for their best day since April 9, 2025, and making them the best performer in the Technology Select Sector SPDR fund (XLK). We are talking about a crucial supplier of high-performance, application-specific chips (ASICs) for hyperscalers, helping design and manufacture Google’s tensor processing units (TPUs).
Now, some, like Melissa Brown at SimCorp, are concerned about one stock leading the market higher. "Is this sustainable?" she asks. And Ben Reitzes at Melius Research notes that some investors are "petrified" that Alphabet will win the AI war, potentially hurting other stocks. But I see it differently. I see Alphabet's success as validation. It's proof that the AI investments are paying off, that the technology is maturing, and that the future is, in fact, arriving.
Think about the printing press. When Gutenberg invented it, did everyone suddenly become a printer? No. But the printing press revolutionized society, democratized knowledge, and ushered in a new era of communication. Gemini 3, and the AI revolution it represents, is our printing press moment. It's not just about Google; it's about the potential for AI to transform every aspect of our lives. And remember, investors are currently underweight stocks for the first time in four months, according to Deutsch Bank Research.
Deutsche Bank Research forecasts the S&P 500 to reach 8,000 by the end of 2026, driven by rapid AI investment and adoption. Evercore ISI maintains a positive outlook on the S&P 500's future growth, with a 2026 forecast of 7,750. The numbers don't lie.
Of course, there are challenges ahead. We need to address the ethical implications of AI, ensure that its benefits are shared equitably, and guard against its potential misuse. But these are challenges worth facing. Because the potential rewards—a world where AI helps us solve our most pressing problems, create new opportunities, and live more fulfilling lives—are simply too great to ignore.
And what about the Fed? Futures markets are assigning almost a 70% probability that the Fed will trim rates by another quarter point at its final meeting of the year on Dec. 10. According to S&P 500 rips 1.6% higher, Nasdaq posts best day since May as Alphabet reignites AI trade - CNBC, the Nasdaq had its best day since May.
