US stock futures showed positive movement on Sunday night, indicating a possible turnaround as investors set their sights on the upcoming shortened Thanksgiving trading week. This follows a recent pullback that has tempered the year’s AI-driven stock market rally. Futures for the Dow Jones Industrial Average rose approximately 200 points, equating to a 0.4% increase, while S&P 500 futures advanced by 0.5%. Similarly, Nasdaq-100 futures climbed 0.6%.
Trading in US markets will be paused on Thursday for the Thanksgiving holiday and will also close early at 1 p.m. ET on Friday. The uptick in futures comes as equities aim to build on Friday’s rebound, which was primarily triggered by remarks from Federal Reserve Bank of New York President John Williams. He hinted that a rate cut might be on the table for December.
Despite the recent positive sentiments, major stock indexes have seen significant declines in November, as investors reevaluate the high valuations of AI-related stocks. The S&P 500 recorded a 2% drop last week, pushing its month-to-date loss to around 3.5%. The Nasdaq Composite fell 2.7% and has seen a downturn of over 6% this month, while the Dow experienced a nearly 2% decline over the week, contributing to a total decrease of almost 3% for the month.
Investors are grappling with the effects of the longest government shutdown in US history, although economic data releases are beginning to return, signaling a gradual restoration of normalcy in the economic calendar. This week, market participants are keenly awaiting reports on producer prices and retail sales data from September, which are set to be released on Tuesday.
Earnings season continues with a relatively quiet lineup, featuring significant reports from companies like Alibaba Holdings, Dell Technologies, and a selection of retailers including Kohl’s and Best Buy.
In addition to these earnings, the potential ramifications of President Trump’s tariffs linger in the minds of investors. The Supreme Court is expected to rule on the legality of these tariffs, adding further uncertainty. The Commerce Department and the Office of the US Trade Representative are preparing a contingency plan should the ruling not favor the administration.
In commodity markets, gold prices have declined as investor demand for the precious metal wanes, fueled by optimism surrounding a potential rate cut from the Federal Reserve in December.
