After a tumultuous week that saw shares of major technology companies fall sharply, investors are heading into Thanksgiving facing a short but potentially volatile trading period.
Overall, this week will be defined by lagging government data, retailer earnings and new questions about the potential AI bubble. Here's a look at what lies ahead.
Amid wider tensions and concerns over the AI ​​bubble
The Nasdaq rose nearly 1% at Monday's open, while the S&P also appeared to open higher, up about 0.8%. But a repeat of last week's losses is possible, especially given the dramatic intraday reversals investors saw late last week.
For the week ending Nov. 21, the Nasdaq fell nearly 3% and the S&P fell nearly 2%, led by tech majors including Meta and Microsoft, as traders appeared to question the sustainability of AI-fueled spending that has more or less gone it alone supported corporate capital investments and enterprise expenses all year.
Some of the sharpest intraday reversals followed. Nvidia blockbuster resultswhich saw the S&P move about three percentage points from peak to close and from green to red, a sign that fears about the AI ​​bubble may have finally caught up with giddy sentiment. Alphabet alone appeared to be immune, rising 8% over the week against the backdrop of Berkshire Hathaway shares. historical record in shares.
The recent period of instability also highlights wider concerns: hiring outside non-discretionary sectors multi-month decline. Politicians, policymakers and investors are now looking to the Fed for a December rate cut that would end the September and October cuts. But whether any rate cuts will be enough to support hiring or weaken the U.S. housing market remains an open question.
Key data and reports coming this week
On Tuesday investors will receive afterthought in September producer prices, retail sales for the same month and November Conference Board data on consumer confidence. Later this week, the government will release its latest GDP estimate for the third quarter.
Earnings season may be winding down again, but retailers will still have a big role to play in the shortened week in preparation for Black Friday. Dick's, Best Buy, Urban Outfitters, Abercrombie and Kohl's report Tuesday. Smaller tech players including Zoom, Alibaba and Dell will add their own coverage to retail news.
Finally, on Wednesday Dir will provide insight into the state of the agricultural sector amid ongoing trade wars, which is fitting for a trading week shortened by the Thanksgiving holiday across the country. The agricultural machinery giant saw incomes will fall sharply in 2025 as tariffs increased costs and discouraged American farmers from making large capital investments.
