US market futures began changing slightly on Sunday evening, moving into the reduced Thanksgiving holiday week, with all major averages coming off their third consecutive winning performance.
Dow Jones Industrial linked futures tumbled 2 points, or less than 0.1%; S&P 500 futures descended by around 3 points, or almost 0.1%; and Nasdaq 100 futures were down by 34 points, or 0.2%.
Last week, the S&P 500 gained 2.2% while the Dow gained 1.9%, marking the index’s first three-week winning streak since July. The Nasdaq Composite concluded the week up 2.4%, marking its best week since June.
The yield on the benchmark 10-year US Treasury note closed Friday at its lowest level since September 20, prompting some traders to believe that Treasury yields will continue to struggle with stocks and become more appealing to investors.
However, market bulls remain upbeat as the year comes to a close, especially after lower-than-expected U.S. inflation statistics reported last week soothed investors’ concerns over stubbornly high prices. It was also given the optimistic indication that the Federal Reserve may cease raising interest rates.
“I actually think it’s pretty likely we could see record highs before the end of the year,” Bill Baruch, founder of Blue Line Futures, said on CNBC’s “Halftime Report” on Friday. “This is one of the most healthy consolidations over the last couple of days.”
Traders are looking forward to Nvidia’s earnings and forward guidance, which will be released on Tuesday ahead of the Thanksgiving holiday. The chipmaker, whose stock price has skyrocketed this year amid the artificial intelligence frenzy, is projected to outperform earnings and revenue projections for the third quarter, according to FactSet polled analysts. However, there are still concerns regarding the company’s valuation.
Investors and techies are also concerned about the sudden departure of OpenAI’s former CEO, Sam Altman, on Friday, as well as the resignations of other key executives and staff members at the Microsoft-backed business, sparking broader fears about the AI industry’s future.
Although trading around the Thanksgiving holiday has been bumpy in recent years, the Stock Traders’ Almanac reports that November remains the best-performing month for the S&P 500.