Wall Street Surges on Fed Rate Cut Hopes Amid Tech Valuation Concerns

Wall Street stocks rallied on Monday, driven by the increased likelihood of a December rate cut from the Federal Reserve. Tech stocks led gains, despite valuation concerns, as economic data suggested labor market weaknesses. Investors celebrated potential interest rate cuts, boosting major indexes significantly.

Wall Street's optimism soared on Monday as stocks climbed, extending Friday's rally. The uptick was attributed to increasing odds that the Federal Reserve might cut its key interest rate in December, helping investors look past some inflated tech valuations.

Crucial economic reports, recently delayed due to a government shutdown, suggested potential labor market weaknesses alongside persistent inflation. These factors fueled optimism that the Fed's anticipated rate cut would proceed, spurred further by dovish remarks from Fed officials.

The Nasdaq saw a notable 2.7% rise. While most S&P 500 sectors posted gains, communication services performed the best. Despite some concerns about tech valuations and looming fears of an AI bubble, stocks overall showed resilience.

(With inputs from agencies.)