Equity futures rise slightly as the market enters the shortened holiday week

Stock futures rose slightly in overnight trading on Sunday ahead of the shortened holiday week, a historically strong period for Wall Street.

Futures on the Dow Jones Industrial Average gained 55 points. S&P 500 futures rose 0.1% and Nasdaq 100 futures climbed 0.2%.

U.S. markets are closed on Thanksgiving Day on Thursday. The stock market closes early Friday at 1:00 PM ET.

Stocks have a track record of making gains in Thanksgiving week, potentially setting the stage for a Christmas rally towards the end of the year.

Since 1950, the last five trading days in November have been traditionally positive, according to Sam Stovall, chief investment strategist at CFRA. Meanwhile, there’s a two-thirds chance the market will rise the day before Thanksgiving Day and a 57% chance the day after the holiday, the strategist said.

A major market-changing event this week is President Joe Biden’s nomination for the next chief of the Federal Reserve.

Biden is expected to announce his pick in the coming days, with current Chairman Jerome Powell and Governor Lael Brainard considered the most likely candidates. Many expect a more moderate central bank if Brainard prevails, meaning it would take longer to tighten policies, including raising interest rates.

“I think in the shortened week, that’s probably going to be the biggest driver of market action,” said Jeff Schulze, investment strategist at ClearBridge Investments. “If Brainard is nominated as Fed Chair, it wouldn’t come as a surprise to me to see some near-term volatility. Usually the market tests a Fed Chair.”

The S&P 500 had a winning week, up 0.3%, thanks to a slew of great earnings reports from major retailers and strong US retail data. The tech-heavy Nasdaq Composite rose 1.2% last week. However, the blue-chip Dow fell 1.3% during the period.

Month to date, the S&P 500 is up 2%, on track to post its second positive month in a row. The stock benchmark is up more than 25% in 2021.

— CNBC’s Patti Domm contributed to reporting.