On Monday morning, S&P futures exhibited a mixed performance as the market attempts to recover ahead of the Thanksgiving holiday week, following a decline that has dampened the momentum of this year’s AI bull run. S&P 500 futures rose by 0.5%, while Nasdaq-100 futures saw an increase of 0.8%, and futures on the Dow Jones Industrial Average increased by 82 points, representing a 0.2% rise. The stock market will be closed on Thursday in observance of Thanksgiving Day and will have an early closure at 1 p.m. on Friday. Equities are striving to extend the robust recovery that commenced on Friday following remarks from the head of the New York Federal Reserve, who indicated the possibility of a December interest rate reduction.

Major averages have experienced a significant decline since the beginning of the month, influenced by a reassessment of elevated valuations associated with artificial intelligence-related companies that had driven a substantial portion of the market gains in 2025. The S&P 500 experienced a decline of 2% last week, resulting in a total decrease of 3.5% for the month of November. The Nasdaq Composite experienced a decline of 2.7% in the previous week, resulting in a total decrease of 6.1% for the month, while the 30-stock Dow experienced a decline of 1.9% last week and has decreased by 2.8% so far this month. The concluding phase of November is unlikely to present any less difficulty, as trading volumes are anticipated to decrease in the near term.

Coupled with a lack of significant catalysts prior to the Federal Reserve’s December policy meeting, an increase in volatility may be observed. “Investors exhibit a strong aversion to noise. They crave certainty, and the market simply cannot deliver that right now,” stated Mark Malek in a note. This week’s significant macroeconomic events encompass the release of October U.S. retail sales and the October Producer Price Index data on Tuesday. These indicators are likely to influence market expectations as we approach the Federal Reserve’s concluding meeting of the year, adding to the growing focus on how policymakers will interpret weakening momentum across equities.

Market participants remain cautious as the combination of low trading activity, persistent uncertainty around Fed policy, and shifting sentiment in AI-related stocks continues to shape market dynamics. The mixed performance in stock futures reflects both optimism surrounding potential policy easing and skepticism over stretched valuations. As traders navigate the shortened holiday week, the interplay between macroeconomic data and evolving expectations for the December Fed meeting will likely dictate the next directional move for equities, setting the stage for how markets may close out an already volatile November.