U.S. stock markets are set to observe a holiday schedule for Thanksgiving, with the New York Stock Exchange (NYSE) and Nasdaq closed on Thursday, November 28, and an early closure at 1 PM ET on Friday, November 29. Bond markets will also be closed on Thursday, with a 2 PM ET early closure on Friday. Ahead of the holiday, U.S. stock futures indicated a lower opening, while the volatility index (VIX) rose in the last session. Recent data revealed that the Federal Reserve's inflation gauge increased to 2.3%, aligning with expectations amidst ongoing economic uncertainty. Following this inflation data, U.S. stocks fell, causing the S&P 500 to snap a seven-day winning streak. The Dow and S&P 500 had previously closed at new record highs, but the market's recent performance reflects a cautious sentiment as investors prepare for the holiday.