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. 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:
- Real Estate Services company Opendoor (NASDAQ: OPEN) jumped 17.4%. Is now the time to buy Opendoor? Access our full analysis report here, it’s free for active Edge members.
- Toys and Electronics company Funko (NASDAQ: FNKO) jumped 2.7%. Is now the time to buy Funko? Access our full analysis report here, it’s free for active Edge members.
- Leisure Products company Latham (NASDAQ: SWIM) jumped 5.4%. Is now the time to buy Latham? Access our full analysis report here, it’s free for active Edge members.
- Leisure Facilities company Topgolf Callaway (NYSE: MODG) jumped 10.2%. Is now the time to buy Topgolf Callaway? Access our full analysis report here, it’s free for active Edge members.
- Real Estate Services company eXp World (NASDAQ: EXPI) jumped 5.8%. Is now the time to buy eXp World? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Opendoor (OPEN)
Opendoor’s shares are extremely volatile and have had 103 moves greater than 5% over the last year. But moves this big are rare even for Opendoor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 12.5% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Opendoor is up 389% since the beginning of the year, but at $7.77 per share, it is still trading 26.1% below its 52-week high of $10.52 from September 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $414.40.
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