Overnight trading in stock futures on Sunday was slightly up ahead of the holiday-shortened Week, which is historically strong for Wall Street.

Futures on Dow Jones Industrial Average gained 55 point. S&P 500 futures edged up 0.1% and Nasdaq 100 futures climbed 0.2%.

The U.S. stock markets will close Thursday, Thanksgiving Day. Stock markets close at noon ET. ET Friday

Stocks are known for their track record. posting gains in Thanksgiving weekThis could set the scene for an annual Santa rally.

Chief investment strategist at CFRA Sam Stovall said that the past five November trading days have always been positive since 1950. According to the strategist, two-thirds of market participants are likely to be up on Thanksgiving Day, and 57% the day following,

This week’s big market event will be the nomination of President Joe Biden to become Federal Reserve Chief.

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 dovish central bank if Brainard prevails, meaning it would take longer to tighten policies including raising interest rates.

ClearBridge Investments strategist Jeff Schulze said, “I believe in the shortened week that is likely to be the greatest driver of market action.” It wouldn’t surprise me to notice some volatility in the immediate future if Brainard is elected Fed chair. The market usually tests Fed chairs.”

The S&P 500 came off a winning week, up 0.3%, on the back of a slew of stellar earnings reports from big retailers and strong U.S. retail data. Tech-heavy Nasdaq Composite saw a 1.2% jump last week. However, the blue-chip Dow dropped 1.3% over that time.

Month to date, the S&P 500 is up 2%, on track to post its second positive month in a row. Over 25% has been gained by the equity benchmark in 2021.

—CNBC’s Patti Domm contributed reporting.