U.S. stock futures ticked higher on Sunday evening, signaling a positive start to a holiday-shortened week as traders returned their focus to market fundamentals.

A Quiet Start to the Week

Trading activity is expected to be lighter than usual with the Thanksgiving holiday on Thursday. The U.S. bond market will close early on Wednesday and remain shut on Thursday, with equity markets following suit for the full day. This typically leads to reduced liquidity and can amplify price movements.

What's Driving the Early Sentiment?

The modest pre-market gains suggest a degree of investor optimism, potentially fueled by:

  • Stabilizing Bond Yields: A recent pullback from multi-year highs in Treasury yields has relieved some pressure on equity valuations.
  • Earnings Season Wind-Down: With the bulk of Q3 reports in, the corporate earnings picture has largely supported current market levels.
  • Anticipation for Economic Data: Traders are looking ahead to key releases due early in the week, including the latest read on durable goods orders.

All three major indexes are coming off a winning week, with the S&P 500 notching its third consecutive weekly gain amid growing hopes that the Federal Reserve's rate-hiking cycle has concluded.