US Session: U.S. Futures are Set to Open Higher amid Expectations of Interest Rate Cuts in December

Five Key Things Investors Should Know Before U.S. Market Open

1. Nvidia Joins the Conversation

Shares of Nvidia and Alphabet have been moving in different directions lately, as Alphabet gains more attention in the AI space. While some are questioning whether Google can overtake Nvidia in the AI race, Nvidia has reassured investors that it remains dominant.

Key points:

• Alphabet shares hit a new record yesterday, boosted by interest after the launch of its new Gemini 3 model.
• Additional support came from reports that Meta is considering buying Google’s AI chips.
• Nvidia shares fell over 2% yesterday.
• Nvidia responded to the Meta news, claiming it remains “one generation ahead” in the industry.
• The company insists its chips outperform competitors.
• This morning before the open, Alphabet is up more than 1%, while Nvidia continues to slide.
• Meanwhile, Dell reported yesterday that it expects a strong fourth quarter thanks to AI system sales.

2. Wall Street’s Rally Continues

The market rebound continued yesterday. The Dow Jones led with a gain of over 660 points, or 1.4%.

Investors are focusing on the likelihood of another Federal Reserve rate cut in December. The market now assigns an 84% probability of a cut — up from around 50% just a week ago.

Interest rate futures rose after news that Kevin Hassett — considered a supporter of more aggressive cuts — is a favorite to succeed Jerome Powell as Fed Chair.

Treasury Secretary Scott Bessent said there’s a “very good chance” President Trump will announce the new Fed chair “before Christmas.”

3. Ukraine War

Ukraine is reportedly ready to move forward with a U.S.-backed peace framework, which could end its long-running conflict with Russia.

President Trump stated that the countries are “very close to a deal” with “a few remaining points of disagreement” and that he will meet with Zelensky and Putin once the deal is finalized or nearly finalized.

Russia said today that it has not yet received an official updated version of the document. U.S. Special Envoy Steve Whitcoff is scheduled to travel to Moscow next week for a meeting with Putin.

4. Michael Burry’s AI Bet

Michael Burry (“The Big Short”), famous for predicting the 2008 financial crisis, is now focusing on artificial intelligence.

After deregistering his fund Scion Asset Management, Burry started a blog explaining why he believes AI is a bubble. According to his former colleague Phil Klipin, companies’ AI infrastructure spending is not justified.

Nvidia responded strongly — CNBC reports the company circulated a private note to analysts refuting Burry’s claims, mentioning him by name.

5. Weak Sentiment in Real Estate

U.S. home sellers are pulling back in large numbers. Redfin reported that nearly 85,000 sellers withdrew their homes from the market in September — the highest level for that month in eight years.

Reasons:

• Weak demand
• Falling prices
• Economic uncertainty

Around 15% of the withdrawn listings were at risk of being sold at a loss.

The Conference Board’s consumer confidence index also fell to its lowest level since April, driven by concerns about a weak labor market.

U.S. Stock Futures Rise Ahead of Market Open

Futures tied to the Dow Jones Industrial Average rose 97 points, or 0.2%. Futures on the S&P 500 and Nasdaq 100 gained 0.3% and 0.5%, respectively.

All three major indexes closed higher on Tuesday after volatile trading. The Dow Jones rose more than 660 points (1.4%) for a third consecutive positive session. Several tech stocks also rallied, supporting the broader market. Alphabet reached new highs after reports that Meta is considering using Google’s TPU chips in 2027. Meanwhile, chipmaker Nvidia dropped over 2.5%.

“Stocks are attempting to recover from recent weeks’ losses, suggesting that buyers of pullbacks remain active,” said Clark Belin, President and Chief Investment Officer at Bellwether Wealth. “The market decline in November was about 4% from the late-October peak — well below the usual 10% threshold for a correction.”

“While we expect the market to test these highs again, there is currently no obvious catalyst to push it higher by year-end,” Belin added.

Investors are monitoring factors that could influence the Fed’s next rate decision. According to CME’s FedWatch tool, traders assign roughly an 85% probability of a 25-basis-point rate cut in December.

Treasury Secretary Scott Bessent said on Tuesday there is a “very high chance” that President Trump will announce the new Fed chair “before Christmas.” Although interviews with several candidates are underway, expectations are focusing on White House National Economic Council Director Kevin Hassett, who has emerged as the favorite and is thought to be more supportive of lower rates.

Overall, November is proving challenging for stocks. All three major U.S. indexes are on track to finish the month in negative territory, as high-valuation concerns have cooled rallies in some high-performing tech companies. The S&P 500 is down about 1% for November, the tech-heavy Nasdaq Composite has lost roughly 3%, and the Dow has declined about 1% so far this month.