Stocks experienced a significant rally as investor optimism grew over a potential interest rate cut in December and a rebound in AI stocks. The Nasdaq surged 2.7%, its best day since May, while the S&P 500 gained 1.6%. The rally was driven by comments from Fed officials supporting a rate cut, with Mary Daly of the San Francisco Fed and Fed Governor Christopher Waller advocating for lowering interest rates due to concerns about the labor market. Market odds of a rate cut rose above 85%, according to CME Group's FedWatch. Tech giants like Apple, Nvidia, Amazon, and Alphabet led the gains, with Alphabet's Google announcing a new AI model, Gemini 3. Chipmakers such as Broadcom, Micron, and AMD also saw broad enthusiasm. The market's optimism was further supported by signals from Fed officials, especially New York Fed President John Williams, who indicated support for a rate cut, boosting expectations for December.