04:44 PM EST, 11/24/2025 (MT Newswires) -- US equity indexes surged on Monday as the odds of an interest-rate cut in December doubled from a week ago, triggering a rally in high-growth sectors.

The Nasdaq Composite soared 2.7% to 22,872.01, with the S&P 500 up 1.6% to 6,705.12 and the Dow Jones Industrial Average 0.4% higher at 46,448.27. All but two sectors, energy and consumer staples, advanced. Communication services catapulted 4%, followed by technology and consumer discretionary, with gains of at least 1.9% each.

The CBOE Volatility Index slumped 12% to 20.52 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. Those concerns, however, dissipated after New York Fed President John Williams said Friday he sees room for "further adjustment" to interest rates in the near term.

"The comments [from Williams] 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."

Most US Treasury yields fell, with the 10-year down 3.1 basis points to 4.03%.

The likelihood of a 25-basis-point cut in rates next month jumped to over 85% 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 2.1%, 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 6.3%.

Micron Technology ( MU ) and SanDisk ( SNDK ) are expected to benefit from reports of tightening memory supply conditions, Morgan Stanley said in a Monday note. "It seems most pronounced in DDR5 DRAM, where there is an active sense of crisis that the product is not available at any price," the report said. Shares of Micron climbed 8%, among the biggest gainers on the two indexes.

HSBC adjusted its Broadcom ( AVGO ) share price target to $535 from $400 while maintaining its buy rating. Shares were up 11%, the top gainer on the S&P 500 and the Nasdaq.

In economic news, the Dallas Fed's monthly manufacturing index deteriorated to minus 10.4 in November, from minus 5.0 in October, compared with expectations for an improvement to minus 2.0 in a survey compiled by Bloomberg, indicating faster contraction.

In energy markets, West Texas Intermediate crude oil futures advanced 1.5% to $58.93 a barrel.

Gold futures rose 1.3% to $4,130.31, and Silver futures jumped 2.5% to $51.18.