Markets opened higher as Wall Street entered a holiday-shortened trading week, with optimism supported by expectations of another Federal Reserve rate cut in December. The S&P 500 climbed early Monday, building on Friday’s momentum, while the Dow Jones Industrial Average and Nasdaq Composite also posted gains. Shorter trading periods often concentrate investor sentiment, and this week is no exception as traders brace for Thanksgiving, Black Friday, and Cyber Monday data.
U.S. Markets Open Higher Amid Fed Rate-Cut Hopes
The S&P 500 rose 0.7% early Monday, continuing last week’s rebound. The Dow Jones Industrial Average added 138 points, and the Nasdaq Composite climbed 1.1%. Investors are increasingly confident that the Federal Reserve will cut its benchmark rate at its December meeting, providing additional support for U.S. equities during the holiday-shortened trading week.
Pre-market futures echoed the upbeat tone: S&P 500 futures rose 0.5%, Dow futures gained 0.2%, and Nasdaq futures jumped 0.7%. With markets closed Thursday for Thanksgiving, traders are adjusting their positions earlier than usual, anticipating a rush of consumer-related data later in the week.
Novo Nordisk Falls After Alzheimer’s Drug Disappoints
One of the most significant moves of the morning came from Novo Nordisk (NYSE:NVO). Its U.S.-listed shares sank roughly 10% after the company reported that its Alzheimer’s drug candidate failed to slow disease progression in a major clinical trial. The setback weighed on biotech sentiment, even as broader markets advanced.
Focus Returns to the U.S. Consumer
Analysts say that after last week’s volatility—driven in part by swings in artificial intelligence and semiconductor stocks like Nvidia (NASDAQ:NVDA)—traders are shifting attention back to the consumer. Stephen Innes of SPI Asset Management emphasized that consumer spending remains the “backbone of U.S. growth,” accounting for two-thirds of GDP.
The recent six-week U.S. government shutdown left markets with limited economic data. That scarcity means any glimpse of holiday activity, such as retail foot traffic or credit card spending, carries more weight than usual. As Innes noted, “In a data desert, even a puddle looks like a lake.”
Mixed Global Market Performance
Global equity markets showed mixed but mostly positive results, adding context to the U.S. rally during the holiday-shortened trading week.
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Europe: Germany’s DAX rose 0.5%, the UK’s FTSE 100 gained 0.3%, and France’s CAC 40 was flat.
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Asia:
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Hong Kong’s Hang Seng Index jumped 2%, boosted by a 4.7% surge in Alibaba (NYSE:BABA) after strong demand for its upgraded Qwen AI app.
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The Shanghai Composite saw a modest 0.1% gain.
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Japan’s markets were closed for a holiday.
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South Korea’s Kospi slipped 0.2% due to heavy selling in automakers.
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Taiwan’s Taiex rose 0.3%, while India’s Sensex fell 0.4%.
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Commodity markets also showed stability, with U.S. crude oil at $58.17 per barrel and Brent crude at $62.06.
A Volatile Week Ends on a Strong Note
Friday capped a turbulent week with a strong rally: the S&P 500 gained 1%, the Dow climbed 1.1%, and the Nasdaq rose 0.9%. Nearly 90% of stocks in the S&P 500 advanced. Still, the recent sharp swings represent the most intense intraday volatility since April’s sell-off, challenging investors after months of steady upward momentum.
As the holiday-shortened trading week continues, traders will watch consumer spending trends, pre-holiday retail activity, and any clues about the Federal Reserve’s next move—all of which could shape market direction heading into year-end.
Looking ahead, analysts caution that while momentum is positive, the compressed schedule of the holiday-shortened trading week could amplify market reactions to any unexpected economic data or corporate announcements. Retailers, technology giants, and consumer-facing companies will be under particular scrutiny as investors look for early signs of spending strength. With inflation cooling and rate-cut hopes high, even modestly positive indicators may be enough to keep markets steady into December as investors cautiously position themselves for year-end market trends.
Featured Image – Freepik
