Stock market zooms toward Thanksgiving as AI plays surge

Market Overview - Major U.S. indexes are set to open positively, with S&P 500 futures up 0.25%, Nasdaq up 0.4%, and Dow slightly positive after gains on Tuesday [1] - Following last week's volatility, consistent positive trading is expected to provide a pleasant holiday week for investors, despite underlying sector challenges [2] Technology Sector - A potential deal between Alphabet and Meta regarding AI chips is disrupting the traditional tech landscape, with Alphabet approaching a $4 trillion valuation and Nvidia around $4.3 trillion after a selloff [3] - Alphabet has gained nearly $1 trillion in market cap over the past six weeks, driven by positive reception of its Gemini AI model and a significant investment from Berkshire Hathaway [4] - The possibility of Meta considering Alphabet's AI chips indicates a shift in the competitive landscape, potentially reducing reliance on Nvidia [5] Economic Outlook - HSBC forecasts the S&P 500 could reach 7,500 by the end of 2026, driven by the AI capital expenditure cycle, while noting a "two-speed economy" with strong high-end spending and weaker performance in other areas [6] - Deere & Co. reported challenges in large equipment demand, reflecting tough conditions outside the tech sector, as trade wars and macroeconomic uncertainty affect American farmers [7] Retail Sector - Abercrombie & Fitch experienced a nearly 40% stock rally after strong same-store sales, indicating a positive trend as retailers approach Black Friday [8] - Value-oriented retailers like Walmart are benefiting from consumer thriftiness, while Target faces challenges in attracting middle and upper-middle-class shoppers for holiday spending [8]