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AI Stocks Tumble, Market Eyes Holiday Week Rebound
24 Nov
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.
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.
