Stock futures increased in overnight trading on Sunday slightly ahead of the shortened week due to the holiday.
Futures on the Dow Jones gained 55 points. S&P 500 futures gained 0.1% and Nasdaq 100 futures gained 0.2%.
U.S. markets will remain close on Thursday due to Thanksgiving Day. And the stock market ends early on Friday at 1 p.m. ET.
Stocks have a record of posting increasing gains in the Thanksgiving week, which will significantly set the platform for a year-end Santa rally.
Since 1950, trading of the final five days of November month has always been positive, as per Sam Stovall who is Chief Investment Strategist at CFRA. There is approximately 66% chance that the market will be up on the day before Thanksgiving Day and a 57% chance that the market will be up on the day after the holiday, the strategist said.
Another big market-moving step this week is the nomination for the next central bank chief by President Joe Biden.
ClearBridge Investments Strategist, Jeff Schulze said, “I do think in the shortened week, that is probably going to be the biggest driver of market action. If Brainard is nominated as Fed chair, it wouldn’t be a surprise to me to see some near-term volatility. Usually, the market tests a Fed chair.”