NEW YORK, Nov. 24 (Xinhua) -- U.S. stocks finished higher on Monday as markets extended a rebound heading into the Thanksgiving holiday week.

The Dow Jones Industrial Average rose 0.44 percent to 46,448.27. The S&P 500 added 1.55 percent to 6,705.12. The Nasdaq Composite increased 2.69 percent to 22,872.01, its biggest one-day gain since May.

Nine of the S&P 500's 11 sectors ended higher. Communication services and technology led the advance, up 3.94 percent and 2.49 percent, respectively. Consumer staples and energy lagged, slipping 1.32 percent and 0.32 percent.

Shares of Alphabet jumped 6.28 percent as optimism grew over the company's position in the AI race. Google last week announced its upgraded AI model, Gemini 3, roughly eight months after unveiling Gemini 2.5.

Enthusiasm around AI spread across the sector. Broadcom surged 11.1 percent, while Micron Technology gained nearly 8 percent. Palantir and AMD each rose around 5 percent, while Meta, Nvidia and Amazon also advanced.

Stocks built on Friday's strong rebound after the president of the Federal Reserve Bank of New York signaled that a December interest rate cut remains possible. The CME FedWatch tool now shows an around 85 percent probability of a reduction of benchmark interest rates next month.

Markets enter a shortened holiday week, with U.S. exchanges to be closed Thursday for Thanksgiving and closing early on Friday. A wave of delayed economic data will start arriving this week, including September producer prices and retail sales, along with November consumer confidence due Tuesday.

On the earnings front, results from Alibaba, Kohl's and Best Buy will be in focus as the reporting season winds down.