U.S. stock futures edged higher in early Monday trade, setting the tone for a cautious rebound as Wall Street heads into a shortened Thanksgiving week following a bruising slide in major indexes.
Dow Jones Industrial Average futures gained roughly 200 points, while S&P 500 futures advanced 0.6% and Nasdaq-100 futures added 0.8%, signaling tentative strength after weeks of pressure on stretched AI valuations.
The stock market will remain closed on Thursday for Thanksgiving and will operate only a half-day session on Friday, a period that typically brings thinner volumes and sharper intraday swings.
AI correction and valuation reset weigh on November performance
Stocks are attempting to build on Friday’s reversal, sparked after New York Fed President John Williams indicated he sees room for an interest-rate adjustment in December. But despite that bounce, markets remain notably weaker in November.
S&P 500 is down 3.5% this month
Nasdaq Composite has fallen over 6% in November
Dow Jones is off 2.8% month-to-date
Much of the pressure has come from a revaluation of mega-cap AI players that powered 2025’s rally. Traders say the pullback, while sharp, was overdue after months of outsized gains and lofty earnings expectations.
“Investors dislike uncertainty, and right now the market is offering plenty of it,” said Mark Malek, CIO at Siebert Financial. “Between mixed macro signals and a rethink of AI valuations, there’s hesitation on both sides of the tape.”
Markets reprice Fed expectations
Rate-cut bets shifted meaningfully late last week after Williams’ comments in Chile hinted the Fed may have space to “adjust” policy soon. Futures trading now reflects:
Nearly 70% probability of a quarter-point rate cut at the Fed’s Dec. 10 meeting
Up from 44% just a week ago
The central bank’s benchmark now sits in the 3.75%–4.00% range, and traders say positioning could remain volatile until clearer labor-market signals emerge.
Key data ahead
The week’s two major data points—
• October retail sales
• October Producer Price Index (PPI)—
land on Tuesday and may influence the tone heading into the December FOMC meeting.
With volumes expected to thin and catalysts limited, analysts warn the final stretch of November may witness outsized moves.
