S&P Futures Muted as Bond Yields Climb

Market Overview - Wall Street is preparing for "triple-witching," with a record $7.1 trillion in notional open interest set to roll off as derivatives contracts expire [1] - Major U.S. indices closed higher, with Micron Technology (MU) surging over +10% after strong FQ1 results and an optimistic FQ2 forecast [3] - The Euro Stoxx 50 Index is up +0.02%, with bank and industrial stocks gaining, while technology and consumer stocks underperformed [7] Economic Data - U.S. rate futures indicate a 75.6% probability of no rate change and a 24.4% chance of a 25 basis point rate cut at the January meeting [2] - November's CPI rose +2.7% y/y, below expectations of +3.1% y/y, while core CPI rose +2.6% y/y, also weaker than the expected +3.0% y/y [2] - The U.S. Philly Fed manufacturing index fell to -10.2 in December, significantly below expectations of 2.5 [2] - U.K. November Retail Sales fell -0.1% m/m and rose +0.6% y/y, weaker than expectations [8] Corporate Earnings and News - Paychex (PAYX), Carnival Corp. (CCL), and Conagra Brands (CAG) are set to report quarterly results [6] - Trump Media & Technology Group (DJT) jumped over +41% after announcing a merger with TAE Technologies valued at over $6 billion [3] - Nike (NKE) plunged over -10% in pre-market trading due to expected sales declines amid weakness in China [15] International Developments - Japan's Nikkei 225 closed higher, led by tech sector gains following the Bank of Japan's interest rate hike to a three-decade high [12] - China's Shanghai Composite Index closed up +0.36%, with tourism stocks rising after a $113 billion free-trade initiative [11] - The European Central Bank is maintaining flexibility over interest rates amid downside risks to inflation [7]