Stocks have bounced back following the massive Thursday sell-off fueled by artificial intelligence, as Williams of the Federal Reserve has rekindled the hopes of a rate cut.

U.S. stocks posted gains on Friday, fueled by the remarks of New York Federal Reserve President John Williams, who implied that the central bank might reduce the interest rates again in December.

The index of the 30 large companies Dow Jones Industrial Average was up plus 225 points, representing 0.5% of the total. The S&P 500 index moved up by 0.4%, while the Nasdaq had a smaller increase of 0.2%.

When a well-known Fed member such as Williams puts forth the market opinion, the market turns from its Isaac Newton-like slump period and increases the traders' expectations that the Fed will indeed do so next month for the third time this year. The Fed funds futures traders have raised the price of the probability of a 0.25% cut to give it a 70% share, which is a big jump from 39.1% yesterday, according to the CME FedWatch tool.

I see monetary policy as being a little bit restrictive, even if a little bit less so than before our recent actions,” Williams said in his remarks for a speech in Santiago, Chile. “So I still think there is room for a small change in the near future to the target range for the federal funds rate that will bring the policy stance closer to the neutral range, thus balancing the achievement of our two goals.

AI stocks, which were prepared for another tough day before Williams’ remarks, managed to reduce their losses during premarket trading. Nvidia and AMD also joined the positive side. Investors are counting on a low interest rate scenario to stimulate a weak economy and support the already very high tech-stock valuations.