The stock market is facing a Thanksgiving stress test amid renewed AI bubble fears

After a choppy week that saw major tech stocks pull back sharply, investors are heading into Thanksgiving facing a short but potentially volatile stretch of trading sessions.

All in all, it’s a week set to be shaped by delayed government data, retailers’ earnings, and renewed questions about a possible AI bubble. Here's a look at what's ahead.

Backdrop of broader tensions and AI bubble fears

Heading into Monday’s open, the Nasdaq ticked nearly 1% higher, while the S&P also looked set to open in the green, moving up by about 0.8%. But a replay of last week’s losses could be in store — especially given the dramatic intraday reversals investors observed late last week.

For the week ending November 21, the Nasdaq slid almost 3% and the S&P lost nearly 2%, led by tech’s biggest names, including Meta and Microsoft, as traders appeared to question the sustainability of the AI-driven spending that has more or less singlehandedly bolstered corporate capex and enterprise spending all year.

Some of the most violent intraday reversals followed Nvidia’s blockbuster results, which saw the S&P swing some three percentage points from peak to close and green to red, a sign that AI bubble fears may be catching up at last to giddy sentiment. Alphabet alone appeared immune, rising 8% for the week on the back of Berkshire Hathaway's historic entry into the stock.

The recent stretch of volatility also highlights broader fears, with hiring outside non-discretionary sectors seeing multi-month declines. Politicians, policymakers and investors are now looking to the Fed in hopes of a December rate cut, one to round out September’s and October’s. But whether any rate cut will be enough to shore up hiring or the faltering U.S. house market remains an open question.

Key data and reports set to land this week

On Tuesday, investors will get a delayed look at producer prices for September, retail sales for the same month, and the Conference Board’s November reading on consumer confidence. Later in the week the government will release the latest estimate of third-quarter GDP.

Earnings season may be once again drawing to a close, but retailers are still set to play a big role in the shortened week, appropriate for the run-up to black Friday. Dick’s, Best Buy, Urban Outfitters, Abercrombie and Kohl’s report on Tuesday. Smaller tech players, including Zoom, Alibaba, and Dell, will round out the retail news with reports of their own.

Finally, on Wednesday, Deere will offer a glimpse into the health of the agricultural sector amid the ongoing trade wars — appropriate for a trading week shortened by Thanksgiving feasts across the country. The farm machinery giant has seen earnings fall sharply in 2025 as tariffs increased costs and discouraged American farmers from making large capital investments.