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, lifting shares of Broadcom, Micron, and Palantir significantly. 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:
- E-commerce Software company Shopify (NASDAQ: SHOP) jumped 5.7%. Is now the time to buy Shopify? Access our full analysis report here, it’s free for active Edge members.
- Data Analytics company Strategy (NASDAQ: MSTR) jumped 4.2%. Is now the time to buy Strategy? Access our full analysis report here, it’s free for active Edge members.
- Content Delivery company Fastly (NYSE: FSLY) jumped 4.7%. Is now the time to buy Fastly? Access our full analysis report here, it’s free for active Edge members.
- Content Delivery company Cloudflare (NYSE: NET) jumped 3.5%. Is now the time to buy Cloudflare? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company Snowflake (NYSE: SNOW) jumped 3.5%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Shopify (SHOP)
Shopify’s shares are very volatile and have had 26 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 2.9% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut.
The positive sentiment followed comments from New York Federal Reserve President John Williams, a voting member of the rate-setting Federal Open Market Committee (FOMC), who indicated he sees room for further policy easing. Following his remarks, the probability of a December rate cut surged from 39% to 71%, according to the CME FedWatch Tool, causing Treasury yields to fall. Lower interest rates can be particularly beneficial for growth-oriented sectors like software, as they increase the present value of future earnings. This renewed hope provided a boost to the sector, which had recently faced pressure from concerns over high valuations in artificial intelligence.
Shopify is up 44.5% since the beginning of the year, but at $155.38 per share, it is still trading 13.2% below its 52-week high of $179.01 from October 2025. Investors who bought $1,000 worth of Shopify’s shares 5 years ago would now be looking at an investment worth $1,600.
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