5 Things to Know Before the Stock Market Opens This Monday

Here are five critical developments investors need to monitor as the trading day begins:

Last week presented challenges for the stock market, with investors grappling with concerns surrounding the sustainability of the artificial intelligence boom and broader economic health. However, equities found renewed footing on Friday, spurred by revived expectations of imminent interest rate cuts by the Federal Reserve.

Key Takeaways:

• The Dow Jones Industrial Average and S&P 500 each experienced declines nearing 2% over the past week. The Nasdaq Composite bore the brunt of selling pressure, tumbling 2.7% for its third consecutive week of negative performance, largely due to weakness in technology stocks. This underscores the sector’s sensitivity to interest rate expectations and growth forecasts.
• The market exhibited resilience on Friday following remarks from New York Federal Reserve President John Williams, who suggested there is “room for a further adjustment” to interest rates. His statement acted as a catalyst, injecting renewed optimism into the market. The market interpreted William’s comments to suggest that recent economic data, while showing some resilience, is not sufficiently strong enough to deter policy makers from considering measures that support economic growth.
• Following Williams’ commentary, Fed funds futures began to aggressively price in a higher probability of a rate cut at the Fed’s December meeting. CME’s FedWatch tool now indicates a greater than 73% chance of a rate decrease next month, a significant jump from approximately 42% just a week prior. This shift reveals the market’s sensitivity to nuanced signals from Fed officials and its eagerness for potential easing of monetary policy.
• Contrasting Williams’ dovish stance, Boston Fed President Susan Collins expressed reservations about lower rates at the central bank’s next policy meeting, citing “reasons to be hesitant.” This divergence in opinion within the Fed highlights the ongoing debate among policymakers regarding the appropriate course of action given the mixed economic signals. The conflicting views underscore the complexity of the Fed’s decision-making process and the challenges in forecasting future monetary policy.
• Treasury Secretary Scott Bessent, speaking on NBC News’ “Meet the Press,” acknowledged pockets of economic pressure but maintained a positive outlook, asserting that the U.S. is unlikely to experience a recession in the coming year. Bessent’s comments suggest that while certain industries may be facing headwinds, the broader macroeconomic picture remains relatively stable, supporting the view that the current economic expansion can be sustained.

The week ahead will be crucial in deciphering these mixed signals and understanding the true trajectory of the U.S. economy. Investors will be closely watching upcoming economic data releases and further commentary from Fed officials for clarity on monetary policy direction.

A recently released legal filing accuses Meta of suppressing internal research that purportedly demonstrated that individuals who ceased using Facebook experienced reduced levels of depression and anxiety. The study, initiated in 2019, aimed to investigate the impacts of Meta’s platforms on “polarization, news consumption, well-being, and daily social interactions,” according to the legal document.

The allegations are part of larger litigation against social media giants, including Meta, Google’s YouTube, Snap, and TikTok, brought by plaintiffs like school districts and state attorneys general. These lawsuits allege that social media platforms contribute to various societal harms, prompting scrutiny of their business practices and their effects on users’ mental health and well-being.

Meta spokesperson Andy Stone refuted the allegations, stating that the claims are based on “cherry-picked quotes and misinformed opinions” and present a “deliberately misleading picture.” The company maintains that its platforms provide valuable services and resources to users and that it is committed to addressing any potential harms.

This legal battle underscores the growing concerns surrounding the impact of social media on society, particularly regarding mental health and well-being. It raises critical questions about the responsibility of social media companies to mitigate potential harms and promote user safety.

Shares of Novo Nordisk experienced a significant decline of over 10% following the announcement that its Alzheimer’s trial failed to meet its primary endpoint. The trial assessed the efficacy of semaglutide, the active ingredient in Ozempic and Wegovy, in slowing cognitive decline in Alzheimer’s patients.

While analysts considered the trial a long shot, given the complex nature of Alzheimer’s disease and the prior mixed results of semaglutide on Alzheimers related biomarkers in early trials, the market reacted negatively to the news. The company believed there was justification explore the potential. However, The failure represents a set back for one of the key focuses the pharmaceutical company has been focusing on to grow future revenues.

Novo’s chief scientific officer, Martin Holst Lange, acknowledged the low probability of success but emphasized the company’s “responsibility to explore semaglutide’s potential.” This commitment reflects Novo Nordisk’s broader strategy of investing in innovative therapies for challenging diseases, even in the face of substantial risk.

The development raises questions about the future direction of Alzheimer’s research and the challenges in developing effective treatments for this devastating condition. While this trial did not yield the desired results, Novo Nordisk and other pharmaceutical companies are expected to continue their efforts in this critical area of unmet medical need. The company may focus on other biomarkers to develop more personalized and effective approaches to treatment.

U.S. airlines are gearing up for what they anticipate will be another record-breaking Thanksgiving travel period. American Airlines operations chief David Seymour underscored the high stakes involved. Lobbying group Airlines for America (A4A) estimates that airlines will transport more than 31 million passengers between November 21 and December 1.

This holiday travel surge follows a period of disruption caused by the recent federal government shutdown, which impacted approximately 6 million air travelers, according to A4A. The shutdown strained airline operations and led to delays and cancellations, highlighting the vulnerability of the aviation system to external factors. Although air traffic controllers and technicians who maintained perfect attendance during the government closure have been recognised with bonuses, it does not discount the impact of such closures on flight planning.

Airlines have invested heavily in technology and staffing to mitigate potential disruptions. The efficiency of airlines is being tested not only during this Thanksgiving period but is likely to increase in coming years. Passengers should expect to have to pay premiums on their flights to support these efficiencies.

Universal’s “Wicked: For Good” grossed approximately $150 million in domestic ticket sales during its opening weekend. This impressive performance marks the second-highest opening weekend for a film released in 2025 and the largest debut ever for a Broadway adaptation.

According to data from EntTelligence, around 10 million tickets were sold for “Wicked: For Good” during its opening weekend. Comscore’s head of marketplace trends, Paul Dergarabedian, suggests that the movie-musical could propel this year’s Thanksgiving film slate to surpass the record-breaking period of 2024. The box-office success reflects a strong appetite for high-quality entertainment and the enduring popularity of the “Wicked” franchise.

The success of “Wicked: For Good” highlights the importance of the entertainment industry in driving consumer spending and contributing to overall economic activity. The film is likely to continue to attract audiences throughout the holiday season, further bolstering the box office and providing a boost to the industry. The company maybe reviewing how they can support smaller independent production companies, to provide a more diverserse landscape and avoid concentration risk to ensure that they are not too reliant on blockbusters.

Here’s what we’re keeping an eye on this holiday week:

• **Tuesday:** Best Buy, Dick’s, Abercrombie & Fitch and Kohl’s earnings (before the bell); Workday, Dell and HP earnings (after the bell); September producer price index; September retail sales data
• **Wednesday:** Fed’s Beige Book
• **Thursday:** Thanksgiving, markets closed
• **Friday:** Stock market closes early