Stock futures rose on Monday morning as investors look for a rebound ahead of the Thanksgiving holiday week, following a recent downturn that deflated this year’s bullish trend in artificial intelligence stocks. Futures for the Dow Jones Industrial Average climbed 124 points, or 0.27%, while S&P 500 futures increased by 0.52%, and Nasdaq-100 futures were up by 0.75%. It’s notable that the stock market will be closed on Thursday for Thanksgiving Day and will close early at 1 p.m. ET on Friday.
This positive momentum comes on the heels of a recovery that began last Friday, spurred in part by remarks from the head of the New York Federal Reserve suggesting a potential interest rate cut in December. Despite these hopeful signs, major stock indexes have suffered significant losses throughout November, largely influenced by a reassessment of inflated valuations among companies linked to artificial intelligence. The S&P 500 has dipped 2% in the past week, marking a 3.5% decline so far this month. The Nasdaq Composite fell by 2.7% last week, resulting in a 6.1% decrease for November. Similarly, the Dow dropped 1.9% last week, now down 2.8% month-to-date.
Looking ahead, the remainder of November may pose challenges. Anticipated thinner trading volumes and a lack of major developments prior to the Federal Reserve’s December policy meeting could lead to increased market volatility. Mark Malek, Chief Investment Officer at Siebert Financial, emphasized that investors are seeking clarity amid the current uncertainty, indicating a widespread demand for more reliable market signals.
This week will also be pivotal as key macroeconomic indicators, including October retail sales and Producer Price Index data, are set to be released on Tuesday. These reports could significantly influence market sentiments as investors prepare for the Fed’s final meeting of the year. Overall, while recent trading fluctuations have created turbulence, the market remains poised for potential recovery as it edges closer to the end of the year.