The Globe and Mail reports in its Tuesday, Nov. 25, edition that U.S. stocks closed higher on Monday, extending Friday's rally as increased odds that the U.S. Federal Reserve will lower its Fed funds target rate in December helped investors look past concerns about inflated tech valuations. A Reuters dispatch to The Globe reports that U.S. indexes embarked on the holiday-shortened week with solid gains, with strength in the "Magnificent Seven" group of artificial-intelligence-related momentum stocks putting the tech-heavy Nasdaq out front. Recent U.S. economic reports, released after the six-week government shutdown, indicated labour market weakness and persistent inflation, boosting investor optimism for the Fed's third and final interest-rate cut of 2025 at December's meeting. Dovish commentary from Fed governor Christopher Waller, New York Fed president John Williams and San Francisco Fed president Mary Daly lent some support to that optimism, although other policy-makers voiced dissenting opinions. Financial markets are pricing in an 85-per-cent likelihood of that occurring, up from 42.4 per cent a week ago, according to CME's FedWatch tool. The release of U.S. economic data is set to continue this week.