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Amazon to invest $50B to expand federal AI, computing capacity

SUMMARY:

  • plans to invest up to $50 billion starting in 2026 to expand and supercomputing for U.S. government customers
  • Adds 1.3 GW of AI and supercomputing power across regions
  • Total new investment for Virginia not yet revealed

Amazon on Monday announced a major plan to invest up to $50 billion to expand and supercomputing capacity for Amazon Web Services’ federal cloud customers.

Starting in 2026, will begin building advanced new , adding nearly 1.3 gigawatts of AI and supercomputing power to serve U.S. government customers on the company’s AWS Top Secret, AWS Secret and AWS GovCloud (U.S.) platforms.

“Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how leverage supercomputing,” AWS CEO Matt Garman said in a statement. “We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery. This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.”

Through the investment, federal agencies will also gain broader access to AWS’s full suite of AI services, including Amazon SageMaker AI for model training and customization, Amazon Bedrock for model and agent deployment, AWS Trainium AI chips and AI infrastructure. Amazon said the expanded capabilities will help agencies develop custom AI solutions, optimize massive datasets and enhance workforce productivity.

Amazon says the new capabilities will accelerate discovery and decision-making across government missions — helping agencies achieve in hours what once took weeks or months. It also said integrating AI with modeling and simulation will help America tackle complex challenges with “unprecedented” speed and precision. AWS supports more than 11,000 government agencies.

It is not clear how much of the $50 billion investment will specifically go toward Virginia infrastructure.

The AWS US East (Northern Virginia) Region launched in 2006 and has data centers in Loudoun, Fairfax and Prince William counties. According to the most recently released data, AWS invested $63.9 billion in Virginia data centers between 2011 and 2022. The company credits AWS US East for adding an estimated $21.3 billion to the state’s gross domestic product and supporting 16,600 jobs.

In 2023, AWS announced plans to invest an additional $35 billion in Virginia by 2040 to establish multiple campuses across the state, adding a projected 1,000 jobs. An Amazon spokesperson confirmed on Tuesday that the new $50 billion investment does not include the previously announced $35 billion earmarked for Virginia data centers.

About $11 billion of that $35 billion Virginia investment is being allocated to two data centers under construction in Louisa County, where Amazon recently scrapped plans for a third data center campus amid backlash from county residents.

Earlier this month, Amazon provided an update on its Cosner Tech campus in the Fredericksburg region, where it has invested over $480 million, supporting hundreds of construction jobs and creating more than 50 permanent positions. The 329-acre campus will eventually include seven data centers.

Amazon as a whole has invested more than $161.3 billion in Virginia since 2010, including infrastructure and employee compensation, creating more than 43,000 full and part-time jobs. The company states that its investments have also supported an additional 117,500 jobs indirectly statewide in fields such as construction and professional services.

Raytheon joint venture wins $1.25B Israeli Iron Dome contract

Raytheon-Rafael Protection Systems (R2S), a joint venture between –based aerospace and defense contractor and ‘s Rafael Advanced Defense Systems, has been awarded a $1.25 billion contract to supply Israel with Tamir surface-to-air missiles for that nation’s air defense system.

RTX, which participates in the venture through its business, announced the award last week. The direct commercial sales contract includes missiles, missile kits and test equipment, according to the company.

“This is the first production contract for the R2S joint venture and a major milestone for both Raytheon and Rafael,” said Jonathan Casey, R2S CEO, in a statement.

R2S will perform work at a new facility that opened earlier this month in East Camden, Arkansas. The companies invested $63 million to build the facility, which was established to support Israel’s missile defense organizations within the Ministry of Defense.

The site will be used to produce the Tamir missiles for Israel’s Iron Dome Weapon System and its U.S. variant, SkyHunter for the Marine Corps’ Medium-Range Intercept Capability program.

“The new Camden site is the first all-up-round production facility in the U.S. to manufacture Tamir and SkyHunter missiles,” Casey said.

Raytheon and Rafael have partnered for over a decade on the Iron Dome system, developed by Rafael and operational since 2011. According to RTX, Israel’s Iron Dome has intercepted thousands of threats with a success rate of more than 95%.

RTX said the U.S. equivalent, SkyHunter, is a short to medium-range air defense weapon designed to counter a range of threats, including cruise missiles, aircraft, rockets, artillery and mortars.

RTX has more than 185,000 employees globally and reported more than $80.73 billion in 2024 sales. The contractor is the second highest-ranked Virginia-based company on the 2025 Fortune 500. RTX’s Raytheon business unit is also based in Arlington.

Consumer confidence slides as Americans grow wary of high costs and sluggish job gains

Summary:

  • fell to 88.7 in November, second-lowest since April
  • Americans increasingly worried about and weak
  • sales also slowed as shutdown pressures economic outlook

WASHINGTON (AP) — U.S. consumers were much less confident in the in November in the aftermath of the government shutdown, weak hiring and stubborn inflation.

The said Tuesday that its consumer confidence index dropped to 88.7 in November from an upwardly revised October reading of 95.5, the lowest reading since April, when President Donald Trump announced sweeping tariffs that caused the to plunge.

The figures suggest that Americans are increasingly wary of high costs and sluggish job gains, with perceptions of the labor market worsening, the survey found. Declining confidence could pose political problems for Trump and Republicans in Congress, as the dimmer views of the economy were seen among all political affiliations and were particularly sharp among independents, the Conference Board said.

Earlier Tuesday, a government report showed that retail sales slowed in September after healthy readings over the summer. While economists forecast healthy growth for the July-September quarter, many expect a much weaker showing in the final three months of the year, largely because of the shutdown.

Less-confident consumers may spend less, though the connection isn’t always clear. In recent years, has held up even when the available data suggests they’ve grown more anxious.

“We do not think that consumer spending is about to hit a cliff, as spending has decoupled from confidence, but risks to the downside are increasing,” Thomas Simons, chief U.S. economist at Jefferies, an investment bank, said.

The proportion of consumers that said jobs are “plentiful” dropped to 27.6% in November, down from 28.6% in the previous month. It is down sharply from 37% in December.

At the same time, 17.9% said jobs are “hard to get,” slightly below the 18.3% who said so in October. That figure is up from 15.2% in September. The figures on job availability are seen by economists as reliable predictors of hiring and the unemployment rate.

Americans continue to worry about elevated costs, fueling the “affordability” concerns that were a key issue in elections earlier this month.

“Consumers’ write-in responses pertaining to factors affecting the economy continued to be led by references to prices and inflation, and trade, and politics, with increased mentions of the federal ,” said Dana Peterson, chief economist at the Conference Board. The shutdown ended Nov. 12.

The economy likely grew at a solid annual rate of about 3% in the July-September quarter, economists estimate. But growth is likely to slow in the final three months of the year, largely because of the shutdown, which cut off pay for federal workers, disrupted contracts, and interrupted air travel.

The Conference Board survey ran through Nov. 18, about five days after the shutdown ended.

US retail sales rose slightly in September, adding to months of big gains

Summary:

  • U.S. and restaurant sales rose 0.2% in September
  • High prices and weak are pressuring lower-income households
  • Holiday season expected to see modest gains with sales topping $1T
  • Wage growth has slowed, widening the gap between high- and low-income workers

WASHINGTON (AP) — Sales at U.S. retailers and restaurants increased modestly in September as resilient consumers moderated their spending after splurging over the summer.

Sales rose 0.2% in September from the previous month, the said Tuesday, in a report delayed more than a month because of the . Sales jumped 0.6% in July and August and 1% in June. Numerous reports on , employment, spending, and growth remain delayed and the government won’t likely be caught up until late December.

The retail sales figures suggest that Americans pulled back a bit in September as many households are still struggling with high prices for groceries, rent, and many imported goods hit by . Still, the modest increase in spending may lift the economy’s growth to a solid 3% or higher annual rate in the July-September quarter, economists forecast, after a sluggish 1.6% in the first half of the year.

At the same time, hiring has been weak and the rate has ticked higher, which could drag down consumer spendin g and the broader economy if it worsens. Unemployment rose to 4.4% in September, the highest in nearly four years, from 4.3%, according to the delayed monthly jobs report released last week.

Higher-income consumers are driving much of the gains, according to data from Bank of America and reports from retailers such as Walmart, as l ower-income shoppers seek bargains and are more likely to spend more on necessities. .

Tuesday’s report comes before the crucial winter holiday season kicks off this weekend, when retailers earn as much as a fifth of their revenues. The National Retail Federation and other forecasters expect modest sales gains this year, compared with last year’s holiday, with the NRF projecting that sales will top $1 trillion for the first time.

Separately, wholesale prices rose 0.3% in September from August, the Labor Department said Tuesday, and 2.7% compared with a year ago.

The retail sales figures land as many are coming in mixed. Wage growth has slowed this year and is just modestly above inflation, a trend that is likely driving Americans’ concerns around affordability.

, on average, rose 3.8% in September from a year ago, the government said last week. That is only modestly above September’s annual inflation rate of 3%.

But for many Americans, particularly those earning lower incomes or for older workers, wages are rising more slowly and are clearly trailing inflation.

The Bank of America Institute estimates that for the poorest one-third of households, pay grew just 1% in October from a year earlier, while the highest one-third saw their wages rise 3.7%. The gap between higher- and lower-income households matches an August figure as the widest in nearly a decade, the bank said.

How We’ll Eat, Shop + Travel in 2026

Last month, Elevation and AMA Richmond brought together marketers and business leaders for a look at the year ahead and how to plan effectively.

How We’ll Eat, Shop + Travel in 2026 explored the forces reshaping three of the most universal consumer sectors.

Setting the Stage

Elevation Senior Vice President Corey Lane opened the session by naming what’s on every marketer’s mind: uncertainty. “This year has just felt different,” he began, noting that marketers’ established long-term goals are being reevaluated against shifting economic realities, automation, and social change. “With things changing by the day—from disruptions and to consumer behavior—the best we can do is be proactive about how we’ll react.”

Elevation was inspired to explore the sectors shaping consumer quality of life to support clients who have expressed frustration about the challenge of long- and near-term planning. “Even if you don’t work in grocery, , or tourism,” Lane noted, “what happens in these industries will affect your customers, your colleagues, and your household.”
To unpack the outlooks in these sectors, the panel featured three Virginia-based national experts:

  • Laura Strange, Chief Communications & Engagement Officer at the National Grocers Association (NGA)
  • Nancy Thomas, President & CEO of InUnison, representing the Virginia Retail Federation and the National Retail Federation
  • Dan Roberts, Vice President of Research & Strategy at Virginia Tourism Corporation

Eating in 2026: Health, Personalization, and the Local Advantage

The NGA’s Laura Strange opened the discussion with a look inside the grocery aisles, describing how independent grocers nationwide are navigating rising costs and changing expectations. “Margins remain tight, but customers are returning to stores more often,” Strange explained, citing NGA data showing grocery trips per household rising by over 10%. That trend, she said, speaks to renewed appreciation for local stores and the personalized service they offer.

Today’s consumers are driven by value, convenience, and community connection. Independent grocers are standing out by delivering seamless, omnichannel experiences, functionally-focused products, and satisfying the growing appetite for culinary fusions and global flavors.
Strange noted that as , tariffs, and labor costs pressure the industry, retailers are investing in technology and loyalty programs that put personalization first.

Shopping in 2026: Emotional Economies and the Pursuit of Value

Nancy Thomas of InUnison discussed how evolving consumer sentiment is reshaping Main Street. Her message: retail is resilient, but it’s being redefined.

Drawing from new data from the National Retail Federation, Thomas described a paradoxical consumer mood: cautious but still spending. “People are more deliberate now,” she said. “They’re shopping for meaning as much as merchandise.” That shift is forcing retailers to rethink what “value” means. For some, it’s price and convenience. For others, it’s sustainability, experience, or community impact. “2026 will be defined by both value and by values,” Thomas emphasized, echoing a broader theme of the panel, “People want to support local, authentic companies with values that align to their own.”

Thomas also shared breaking reporting from NRF’s Holiday Retail Forecast, projecting a 3.7% to 4.2% YOY increase in national core retail sales, equating to $1.02T in . Thomas pointed to a narrowing gap between online and brick-and-mortar sales as one factor driving this projection.

Tourism in 2026: Cutting Through the F.O.G.

Finally, Dan Roberts of Virginia Tourism Corporation unpacked what’s ahead for travel, and what it means for the state’s $36B tourism industry.

His central metaphor was that the travel market in 2025 is in a “F.O.G.: Fragmented and Flipped, On-Edge, and Guarded but Growing.” Despite economic uncertainty, travel remains an emotional priority.

“The is steady but fragile,” Roberts said, noting that consumer spending continues to rise modestly even as job growth cools. High-end travelers are driving industry growth, and Virginia’s hotel sector is outperforming national averages, fueled by demand rather than pricing. Roberts also pointed to a steady increase in rail travel, benefiting destinations like Richmond, which value-seeking travelers can access easily from Northeast markets like Philadelphia, D.C., Baltimore, and Boston.

Roberts’ advice mirrored the session’s broader takeaway: “Stay agile. Focus on proximity and value. The future belongs to those who can adapt quickly.”

A Common Thread

Across grocery aisles, retail storefronts, and travel corridors, one theme kept recurring: value-seeking consumers. Every panelist agreed that these customers are shaping the future, defining value as much by quality, purpose, connectivity, and experience as by price. The economy may be steadying on paper, but for many people, life still feels hectic and uncertain. The brands winning in this environment are those that seek to deeply understand their customers and show up for them in meaningful ways.
That means personalization, customer service, and relationships matter as much as deals and discounts. Empathy must become a core strategy, grounded in curiosity about how and why people’s needs and priorities are constantly evolving. The main takeaway was clear: plan with humility, stay flexible, and remain connected to the needs of the people you serve.
Headquartered in Richmond, Virginia, Elevation is an integrated advertising agency dedicated to elevating brands through creative and strategic excellence. Since 2001, Elevation has delivered a higher level of thinking and a higher level of service, helping regional and national marketers achieve a higher level of success.

Watch the full on-demand discussion here

BAE Systems promotes VP to chief global supply chain officer

Falls Church-based announced Monday that it has named Brad Pelachyk as its senior vice president and chief global officer, effective Dec. 20.

Pelachyk, who has more than 30 years of global procurement and supply chain experience, will succeed Ann Ackerson, who plans to retire.

In this role, Pelachyk will report to Tom Arseneault, the company’s president and CEO, and will serve as the company’s procurement leader and a member of the senior team, as well as leading the company’s global supply chain organization.

“Brad’s leadership and expertise will position our supply chain team to continue advancing the growth and success of our business,” said Arseneault in a statement. “I also want to thank Ann for her many years of dedicated service to our company and congratulate her on a successful and distinguished career.”

Palachyk most recently served as the company’s vice president of supply chain, where he oversaw operational efficiency, emphasized procurement savings, mitigated supplier risk and spurred digital transformation.

Before joining BAE Systems, he held leadership roles at Thales Group and FIAT Group. He has a bachelor’s degree in international business from Northwood University and a master’s degree in business administration from the University of Michigan’s Ross School of Business.

BAE Systems Inc. has about 41,000 employees worldwide and reported $16.85 billion in 2024 sales.

Local leaders shape solar’s future

While national headlines spotlight federal policy most prominently these days, it seems to me the most critical battleground for in Virginia is local.

Recent federal legislation is phasing out key tax credits for solar, but as is often the case, necessity has become the mother of invention. Developers are finding new ways to make projects work without relying on Washington. And that shift only heightens the influence of county boards, planning commissions and ordinances — not Congress or the Federal Energy Regulatory Commission — in determining whether solar projects move forward.

We’ve seen it firsthand: Projects with sound engineering and strong economics stall due to local opposition, often because community relationships weren’t built early. Developers must recognize that success depends on public perception as much as project design.

Here are some suggestions for those working to bring solar to the commonwealth:

1. Outreach isn’t optional

Local opposition often tips the scales. A coordinated group of residents opposing a solar project can dominate a public hearing — especially when no one speaks in favor other than the landowner who is selling or leasing to the developer.

One client who is a solar developer defused potential opposition to a large solar project by visiting every adjoining landowner and explaining the project personally. Developers know how to explain setbacks, buffers and screening requirements, now standard in many ordinances. Education and empathy go a long way. Many residents are surprised to learn how little of a project will be visible from their property or how many protections are already in place. With energy storage, neighbors are often surprised by how relatively small these facilities are compared to even a modest solar project.

2. Collaborate

County supervisors and staff are navigating complex decisions, often with limited resources. Many are trying to balance state laws, local comprehensive plans and community sentiment, while also fielding misinformation and pressure from both sides.

Developers should approach these officials as collaborators. Be clear, patient and respectful. Provide technical explanations in plain language.

When developers show respect for the process and serve as a resource, they often find more openness and engagement in return.

3. Influence policy early

Local solar ordinances are being written — and rewritten. When developers don’t engage, policies can include restrictive caps, arbitrary megawatt limits or acreage constraints that function as de facto bans. By the time a policy is finalized, it can be hard to unwind.

That’s why it’s essential to participate early. Share model ordinances. Offer data. Flag red flags. Even counties that want to support solar sometimes enact problematic rules because they didn’t get good input when it counted.

It’s encouraging that some counties are proactively seeking industry input in writing ordinances to regulate the new (to them) technology of electricity storage.

4. Separate solar from

Solar is increasingly caught up in backlash against data centers, which are seen as energy-hungry developments with few local benefits. Don’t miss an opportunity to set the record straight.

Solar doesn’t create the demand crisis — it helps solve it. Solar can be up and running in a fraction of the time it takes to build a gas-powered power plant. It also reduces dependence on long-distance transmission and eases local bottlenecks. Positioning solar as part of an all-of-the-above strategy for energy reliability can help reframe the conversation in the eyes of skeptical local audiences.

Jared Burden is a co-managing partner of GreeneHurlocker, a Virginia-based energy and general business law firm. He frequently advises developers of utility-scale and distributed generation projects in land use and other matters.

Broadcast giant Sinclair makes bid to buy out EW Scripps for $7 per share

Summary:

  • proposes $7-per-share takeover of E.W. , offering cash and stock
  • Deal would give Scripps shareholders roughly 12.7% of the combined company
  • Scripps board reviewing the unsolicited offer amid concerns over “opportunistic” moves
  • Bid comes as accelerates — including ‘s recent $6.2B deal

NEW YORK (AP) — Sinclair has submitted a bid to buy out E.W. Scripps for $7 per share, in a deal that could bring further consolidation across America’s local TV news landscape.

Under the proposal, which Sinclair disclosed Monday, the broadcast giant would acquire all of Scripps’ outstanding shares that it doesn’t already own. Sinclair has already upped its stake in Scripps recently — accounting for nearly 10% of the company’s class A common stock as of Nov. 17, per regulatory filings.

The proposed $7 per share price tag would consist of both cash and stock. If approved, the deal would give Scripps’ shareholders about a 12.7% stake of the combined company upon closing.

Sinclair is requesting a response from Scripps by Dec. 5.

“We are submitting an updated, actionable merger proposal,” Sinclair CEO Christopher S. Ripley wrote in a letter to Scripps’ board. He said the deal would “strengthen local ” and “position the combined company and employees for long-term success.”

Ohio-based Scripps acknowledged that it had received an “unsolicited proposal” from Sinclair on Monday. The company said its board would review it like any other offer — and determine next steps based on the interests of its stakeholders and “audiences it serves across the United States.”

Scripps previously said it would also protect itself from any “opportunistic actions of Sinclair or anyone else.”

Shares of E.W. Scripps Co. jumped more than 5% Monday, trading at about $4.30 apiece as of 2:30 p.m. ET. Sinclair’s stock slipped just under 1%, trading around $15.50 by the afternoon.

Sinclair has been eyeing Scripps for some time. Last week, the Maryland-based company said it held months of talks “regarding a potential combination” — and maintained more broadly that increasing its scale is “essential to address secular headwinds” in the U.S. media industry, pointing to growing competition.

Just this past August, Nexstar Media Group announced a $6.2 billion deal to buy broadcast rival Tegna.

Companies like Sinclair — as well as Nexstar and Tegna — have argued that acquisitions would allow them to better compete with both bigger media and tech players vying for consumers’ attention today. But critics warn of wider homogenization of news. In other words, more and more local TV stations becoming “duplicators” of syndicated reporting — and sharing corporate owners who may decide not to air certain content.

Sinclair Broadcast Group owns, operates or provides services to 185 TV stations in 85 markets affiliated with all major broadcast networks, and it also owns the Tennis Channel. The company has a reputation for a conservative viewpoint in its broadcasts.

Meanwhile, E.W. Scripps Co. operates more than 60 local stations in over 40 markets. It also owns national news outlets Scripps News and Court TV, as well as entertainment brands like ION.

Whether or not Scripps accepts Sinclair’s proposal has yet to be seen. And like all major corporate mergers, the deal would still require the regulatory greenlight. Sinclair on Monday said it was confident that its proposed transaction could be completed under existing rules.

Still, media consolidation could accelerate industrywide if the loosens restrictions — or, perhaps more immediately, makes exceptions for certain mergers. Just last week, in efforts to complete its Tegna acquisition, Nexstar asked the Federal Communications Commission for a waiver on current rules that limit the number of stations a single company can own.

Chairman Brendan Carr previously signaled openness to changing those requirements overall. But some conservatives — and Trump himself — have recently expressed disdain over the possibility of such a change leading to an in networks they view as left-leaning.

“If this would also allow the Radical Left Networks to ‘enlarge,’ I would not be happy,” President Donald Trump wrote on social media Sunday. The Republican particularly targeted ABC and NBC, which he claimed were a “VIRTUAL ARM OF THE DEMOCRAT PARTY.”

In response, Nexstar maintained that it believes “the landscape is ripe for regulatory reform” — and added that “we agree with President Trump that the status quo is no longer acceptable.”

Penzance breaks ground on new AWS data center in Chantilly

SUMMARY: 

Penzance, a real estate investment and development firm as well as a fund manager with headquarters in Washington, D.C., broke ground Friday, Nov. 21, in Chantilly on a new data center that has been fully leased by Web Services (AWS).

AWS, a subsidiary of Amazon that provides computing platforms to clients including individuals, businesses and governments, will operate and staff the data center, according to a Nov. 21 Penzance announcement.

Located at 4151 Autopark Circle, the 45-megawatt facility is expected to be completed in the first half of 2027.

The data center will sit on 12 acres of a 79-acre site located adjacent to the Chantilly Auto Park, about 10 minutes from Dulles International Airport.

The facility will be 240,000 square feet and will offer rooftop HVAC units and acoustically enclosed generators to limit noise and vibration. The site will use minimal water and rely on outside air for cooling for 95% of the year, according to Josh Weissman, director of data center delivery for AWS.

“This is a high-impact, future-ready facility — and it’s built for what comes next in , cloud, and edge computing,” John Kusturiss, a partner at Penzance, stated in a news release. “Chantilly offers unmatched connectivity, and this site is designed to deliver for today’s infrastructure needs while anticipating tomorrow’s technologies.”

Additionally, the project will feature EV charging stations, a bird-friendly building design and 67 acres of open green space with walking trails for public use. Diesel backup generators at the data center are designed to reduce particulate matter and noxious emissions by 90%.

Penzance expects the facility to earn a silver for .

“We’re continually innovating to ensure our data centers fit responsibly into the communities we call home,” Weissman stated in the news release.

Building the facility will create more than 1,000 construction jobs. Once operational, the data center is expected to sustain up to 50 operations jobs.

Maryland-based Penney Design Group is the project’s architect. North-Carolina-based Kimley-Horn is the civil engineer and Maryland-based Whiting-Turner is the general contractor.

In October, Penzance announced it had secured $100 million in construction financing for the data center. An affiliate of Penzance acquired the land in 2022. Previously, it was rezoned for vehicles sales, according to the company.

The cost of building the data center has not been disclosed, a spokesperson for Penzance said Monday.

Founded in 1996, Penzance manages more than $1.1 billion in discretionary capital on behalf of institutional investors through its series of flagship funds.

Stocks rally ahead of Thanksgiving on Fed rate-cut hopes, AI surge

Summary:

  • S&P 500 jumps 1.6% as investors bet on a December Fed rate cut
  • and lead gains amid renewed enthusiasm
  • Volatile trading continues as markets await key data
  • Despite uncertainty, S&P 500 sits within 3% of last month’s record

NEW YORK (AP) — The U.S. is rising again on Monday, ahead of a week with shortened trading because of the Thanksgiving holiday.

The S&P 500 climbed 1.6% and added to its jump from Friday. The Industrial Average was up 310 points, or 0.7%, as of 1:57 p.m. Eastern time, and the composite was 2.6% higher.

got a lift from rising hopes that the Federal Reserve will cut its main interest rate again at its next meeting in December, a move that could boost the economy and investment prices.

The market also benefited from strength for stocks caught up in the artificial-intelligence frenzy. Alphabet, which has been getting praise for its newest Gemini AI model, rallied 5.5% and was one of the strongest forces lifting the S&P 500. Nvidia rose 1.8%.

But Monday’s gains were hesitant, and the S&P 500 rallied to a gain of 1% only to halve it within the first 15 minutes of trading, before picking up momentum again.

Stocks have been swinging sharply, not just day to day but also hour to hour, in recent weeks as worries weigh about what the Fed will do with and whether too much money is pouring into AI and creating a bubble. All the uncertainty is creating the biggest test for investors since an April sell-off, when President Donald Trump shocked the world with his “Liberation Day” tariffs.

Still, despite all the recent fear, the S&P 500 remains within 2.7% of its record set last month.

“It’s reasonable to expect that stocks will experience periods of pressure from time to time, which, historically, is quite healthy for longer-term strength,” Anthony Saglimbene, Ameriprise chief market strategist, wrote in a note to investors.

Wall Street will likely remain shaky in the near term because of concerns about AI investments, the Fed and some consumer uncertainty, he wrote. But strong corporate earnings, continued AI innovation and holiday season spending will “set the stage” for good conditions to close the year.

Several more tests lie ahead this week for the market, though none loom quite as large as last week’s profit report from Nvidia or the delayed jobs report from the U.S. government for September.

One of the biggest tests will arrive Tuesday, when the U.S. government will deliver data showing how bad inflation was at the wholesale level in September.

Economists expect it to show a 2.6% rise from a year earlier, the same inflation rate as August. A higher-than-expected reading could deter the Fed from cutting its main interest rate in December for a third time this year, because lower rates can worsen inflation. Some Fed officials have already argued against a December cut in part because inflation has stubbornly remained above their 2% target.

Traders are nevertheless betting on a 79% probability that the Fed will cut rates next month, up from 71% on Friday and from less than a coin flip’s chance a week ago, according to data from CME Group.

U.S. markets will be closed on Thursday for the Thanksgiving holiday. A day later, it’s on to the rush of Black Friday and Cyber Monday.

On Wall Street, U.S.-listed shares of Danish drugmaker Novo Nordisk fell 5.8% Monday after it reported that its Alzheimer’s drug failed to slow progression of the disease in a trial.

Grindr dropped 9.3% after saying it’s breaking off talks with a couple of investors who had offered to buy the company, which helps its gay users connect with each other. A special committee of the company’s board of directors said it had questions about the financing for the deal by the investors, who collectively own more than 60% of Grindr’s stock.

Bitcoin, meanwhile, continued it sharp swings. It was sitting near $88,600 after bouncing between $82,000 and $94,000 over the last week. It was near $125,000 last month.

In stock markets abroad, indexes were mixed in Europe following a mixed finish in Asia.

Hong Kong’s Hang Seng jumped 2% for one of the world’s biggest moves. It got a boost from a 4.7% leap for Alibaba, which has reported strong demand for its updated Qwen AI app. Alibaba is due to report earnings on Tuesday.

In the bond market, held relatively steady. The yield on the 10-year Treasury eased to 4.04% from 4.06% late Friday.

___

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.