United States stock futures climbed on Sunday evening (Monday AEDT) as the market attempted to regain momentum heading into the Thanksgiving holiday week after a bruising slide that has punctured confidence in this year’s artificial intelligence-driven rally.
By 10:30 am AEDT (11:30 pm GMT), Dow futures, S&P 500 futures and Nasdaq futures were up 0.4%, 0.6% and 0.7%, respectively.
Friday’s bounce offered some relief, spurred by comments from New York Federal Reserve President John Williams, who left the door open to a December interest rate cut.
Despite the rebound, major indices remain under pressure in November amid a broad reassessment of elevated valuations across AI-linked names, which had driven much of the gains earlier in 2025.
The S&P 500 slipped 2% last week, extending its month-to-date decline to 3.5%. The Nasdaq Composite shed 2.7% over the same period and is down 6.1% so far in November. The Dow Jones Industrial Average fell 1.9% last week and is off 2.8% for the month.
ANZ analysts noted: “Williams’ assessment of the labour market was echoed by Governor Miran who drew dovish implications from the September labour market data.
"Our assessment is that Chair Powell, Vice Chair Jefferson, governors Waller, Bowman, Miran and NY Fed President Williams all lean towards a December 25bp rate cut.
"It will take a lot to dial back expectations ahead of the communications blackout, which starts 29 November. We continue to anticipate a 25bp rate cut.”
Market conditions may remain unsettled through the remainder of November. With trading volumes expected to thin as the holiday approaches and few major catalysts before the Federal Reserve’s December policy meeting, volatility could intensify.
The stock market will be closed on Thursday for Thanksgiving Day and will shut early on Friday.
Investors will look to key macroeconomic releases this week for further direction, including October U.S. retail sales and the Producer Price Index, both due on Tuesday.
