03:55 PM EST, 11/24/2025 (MT Newswires) -- US equity indexes surged ahead of Monday's close as a continued rise in the odds of an interest-rate cut in December lifted risk sentiment, helping trigger a sharp rally in high-growth sectors.

The Nasdaq Composite soared 2.6% to 22,843.4, with the S&P 500 up 1.6% to 6,705.6 and the Dow Jones Industrial Average 0.6% higher at 46,531.2.

All but three sectors, energy, consumer staples, and real estate, advanced. Communication services rose 4%, followed by technology and consumer discretionary, with gains of at least 2% each.

The CBOE Volatility Index slumped 11% to 20.78 intraday, retreating from its highest since April last Thursday, when investor worries related to AI capital expenditure and circular funding led to a sell-off in high-growth sectors even after Nvidia's ( NVDA ) strong results. Those concerns, however, took a back seat after New York Fed President John Williams said Friday he sees room for "further adjustment" to interest rates in the near term.

"The comments sparked a rebound in risk assets while bonds rallied on dovish repricing," according to a Monday report from FOREX.com.

Williams has always voted with the Federal Open Market Committee majority and not taken an opposing view to Chair Jerome Powell, analysts from Pantheon Macroeconomics were cited as saying Friday in a report from Fortune. "We doubt Mr. Williams would have implied a December easing was likely without consulting members of the Board of Governors, including Chair Powell," Pantheon analysts were cited as saying.

Most US Treasury yields fell, with the 10-year down 2.5 basis points to 4.04%.

The likelihood of a 25-basis-point cut in rates next month jumped to over 81% on Monday, up from 71% on Friday and about 42% a week ago, according to the CME FedWatch Tool.

Meanwhile, in company news, President Donald Trump is considering allowing Nvidia ( NVDA ) to sell advanced AI chips to China, Commerce Secretary Howard Lutnick told Bloomberg TV on Monday. Nvidia ( NVDA ) shares were up 1.9%, among the Dow's leaders.

Alphabet's (GOOG, GOOGL) Google Cloud reported the signing of a multi-million-dollar contract with the NATO Communication and Information Agency to deliver secure sovereign cloud capabilities. Shares soared 6.2%.