Rate Cut Hopes Lift Stocks, Alibaba Soars

US stock futures ascended on Monday as markets embarked on a shortened Thanksgiving week, buoyed by expectations of potential interest rate reductions. This optimism provided a much-needed boost after substantial losses throughout November, with Dow, S&P 500, and Nasdaq futures all indicating upward movement. The prospect of a December rate cut gained traction following comments from New York Fed President John Williams, influencing market sentiment.

Alibaba shares experienced a significant rise in premarket trading, fueled by the impressive milestone of over 10 million downloads for its Qwen AI application within its first week of relaunch. This surge underscores China's burgeoning demand for AI services and positions Qwen as a potential competitor to established platforms. Meanwhile, Treasury yields eased, and oil futures saw a slight dip, while gold prices stabilized.

Investors are closely monitoring upcoming economic indicators, including retail sales and producer price data, for further clues on inflation and consumer spending. The market is also tracking four major themes: interest-rate expectations, AI stock volatility, fresh economic data, and the Supreme Court's upcoming ruling on tariffs. The shortened trading week, marked by the Thanksgiving holiday, suggests potentially lower liquidity and volume.