What Happened?
A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Consumer Electronics company Sonos (NASDAQ: SONO) jumped 4.1%. Is now the time to buy Sonos? Access our full analysis report here, it’s free for active Edge members.
- Apparel and Accessories company ThredUp (NASDAQ: TDUP) jumped 3.4%. Is now the time to buy ThredUp? Access our full analysis report here, it’s free for active Edge members.
- Real Estate Services company RE/MAX (NYSE: RMAX) jumped 3.7%. Is now the time to buy RE/MAX? Access our full analysis report here, it’s free for active Edge members.
- Travel and Vacation Providers company United Airlines (NASDAQ: UAL) jumped 3.5%. Is now the time to buy United Airlines? Access our full analysis report here, it’s free for active Edge members.
- Leisure Products company Acushnet (NYSE: GOLF) jumped 3.2%. Is now the time to buy Acushnet? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Sonos (SONO)
Sonos’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 6% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Sonos is up 19% since the beginning of the year, and at $17.54 per share, it is trading close to its 52-week high of $18.04 from October 2025. Investors who bought $1,000 worth of Sonos’s shares 5 years ago would now be looking at an investment worth $819.39.
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