Google rallied sharply as U.S. stocks rebounded, with experts warning of light holiday trading or amplified volatility

US stocks rallied across the board on Monday as Google (GOOG. O) rallied strongly, rallying in the Thanksgiving holiday week after declines that had dampened the momentum of the previous artificial intelligence bull market. Google shares had a strong performance on Monday, closing up more than 6 per cent as investors turned optimistic about the company's positioning in the AI competition landscape. Google last week released an upgraded version of its AI model, Gemini 3, just eight months after it launched Gemini 2.5. "It's good for Google and its investors, but I'm always wary when I see a single stock leading the market up," said Melissa Brown, managing director of investment decision research at SimCorp. "It doesn't necessarily mean an overall improvement in market fundamentals. In my view, this is hardly an enduring driver of sustained market gains. "Volatility is likely to increase with trading volumes expected to thin in the coming days and the lack of significant catalysts ahead of the Federal Reserve's December policy meeting. Mr. Brown noted that if forthcoming economic data - including Tuesday's September retail sales and producer price index - signal a" stagflationary environment ", it could become a new driver of volatility.