US stock futures experienced a generally positive outlook on Monday as they approached a shortened Thanksgiving trading week, driven by optimism surrounding a possible interest rate cut and the potential for a rebound following a recent pullback that has tempered this year’s AI-centric market rally.
S&P 500 futures increased by 0.2%, while futures for the Dow Jones Industrial Average lingered close to unchanged. In contrast, contracts for the tech-heavy Nasdaq 100 showed a more robust gain of 0.5%, setting the stage for a continuation of Friday’s upward momentum.
The mood among investors has become cautiously optimistic following remarks from John Williams, the president of the Federal Reserve Bank of New York, who indicated that a rate cut could still be on the table in December. However, major indexes have faced substantial losses in November as market participants reevaluate the high valuations of stocks associated with AI technology. The S&P 500 fell by 2% last week, bringing its decline for the month to approximately 3.5%. The Nasdaq Composite has fared worse, dropping by 2.7% and now sitting at over 6% down this month. The Dow also lost almost 2% last week and is down nearly 3% for November.
While the market continues to grapple with the repercussions of the longest government shutdown in U.S. history, economic data releases are gradually resuming, though a complete return to normalcy in the economic calendar is still pending. This week, traders are particularly focused on data regarding producer prices and retail sales from September, which are set to be released on Tuesday.
The earnings season is nearing its conclusion, with expectations for a relatively quiet week. Notable releases include Alibaba Holdings, Dell Technologies, and a few retailers such as Kohl’s and Best Buy. Investors should note that U.S. markets will be closed on Thursday for Thanksgiving and will have an early close at 1 p.m. ET on Friday.
President Trump’s tariffs remain a lingering concern, with the Supreme Court expected to rule on the legality of these tariffs. Both the Commerce Department and the Office of the U.S. Trade Representative are reportedly preparing contingency plans should the ruling not favor the current administration.
In premarket trading, a few stocks are drawing particular attention. Tesla saw its stock rise by 1.8% after CEO Elon Musk announced on social media that the electric vehicle manufacturer had designed AI chips for both its cars and its data centers. Conversely, Eli Lilly’s stock declined by 2% after the company’s market capitalization reached over $1 trillion for the first time last week. WeRide experienced a notable increase of 7% following a report detailing a rise in revenue driven primarily by global fleet expansion.
As November draws to a close, investors are preparing for a week characterized by holiday-related trading, thanks to Thanksgiving and Black Friday. Market participants are still reeling from Nvidia’s recent stellar earnings, which, along with strong economic data, triggered one of the most significant intraday reversals in recent history for the S&P 500. This week, market attention will shift toward key economic indicators, including the Conference Board’s consumer confidence reading, scheduled for Tuesday, while the corporate earnings landscape remains relatively subdued.
On the tech front, Alibaba’s new AI app saw a promising debut, helping to boost its shares in premarket trading, reflecting a positive reception from investors. In the commodities market, gold prices have slipped as potential interest rate cuts from the Federal Reserve diminish demand for the precious metal as a safe haven.
