Why are AI stocks experiencing a downturn?

AI stocks are facing pressure as investors reassess their previously high valuations.

What is expected for the stock market this week?

Markets are attempting a rebound heading into the shortened Thanksgiving week, but volatility may increase.

How will upcoming economic data impact the Federal Reserve?

October retail sales and PPI data will help shape expectations for the Federal Reserve's December policy meeting.

Home / Business and Economy / AI Stocks Tumble, Market Eyes Holiday Week Rebound

AI Stocks Tumble, Market Eyes Holiday Week Rebound

24 Nov

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Summary

Stock futures indicate a potential rebound heading into the Thanksgiving holiday week.
Major averages have declined significantly in November amid AI valuation concerns.
Key economic data this week could influence the Federal Reserve's December decision.

AI Stocks Tumble, Market Eyes Holiday Week Rebound

Stock futures edged higher in overnight trading, signaling a potential market rebound as the trading week, shortened by the Thanksgiving holiday, commences. Major stock averages have experienced significant drops throughout November, a downturn attributed to a broader reconsideration of the sky-high valuations previously seen in artificial intelligence-related stocks, which had previously propelled market gains.

The market is seeking to build on a positive close from the previous Friday, which was partially influenced by a hint from the New York Federal Reserve regarding potential interest rate adjustments in December. However, the overall sentiment has been bearish for November, with the S&P 500 and Nasdaq Composite showing substantial month-to-date losses. The upcoming days are expected to see reduced trading volumes and limited major economic catalysts before the Federal Reserve's final policy meeting of the year, potentially increasing market volatility.