01:48 PM EST, 11/24/2025 (MT Newswires) -- US equity indexes jumped after midday Monday as a continued surge in the odds of a December interest-rate cut boosted investor risk sentiment, helping lift 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 two sectors, energy and consumer staples, gained. Communication services, consumer discretionary, and technology were the top gainers, reflecting growing expectations of policy easing for the third consecutive meeting of the Federal Reserve monetary policy committee on Dec. 10.

The CBOE Volatility Index slumped 12% to 20.68 intraday, retreating from its highest since April last week on 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.

Williams has always voted with the Federal Open Market Committee majority and not taken an opposing view to Chair Jerome Powell, either during his role as the New York Fed President since 2018 or when he was the president of the San Francisco Fed between 2011 and 2018, 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.

The likelihood of a 25-basis-point cut in rates next month jumped to over 79% on Monday, up from 71% on Friday and 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% intraday, 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% intraday.

Micron Technology ( MU ) and SanDisk ( SNDK ) are expected to benefit from reports of tightening memory supply conditions, Morgan Stanley said in a 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 8.2% intraday, 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. Broadcom ( AVGO ) shares were up over 10% intraday, 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.

US Treasury yields were mixed, with the 10-year down 1.9 basis points to 4.04%.