The yield on the benchmark 10-year Treasury note edged lower to 4.115% early on Monday. U.S. stock futures were set to start the week in the red, putting the so-called Santa Claus rally at risk. Silver prices were volatile, hitting new highs before giving back some gains. Dow Jones Industrial Average futures were down 27 points, or 0.1%. S&P 500 futures were falling 0.2% and Nasdaq 100 futures were losing 0.4%. The S&P 500 is up 0.2% since the Santa Claus rally period — which includes the final five trading ...

Market Overview - US stock futures advanced as investors moved past a challenging week, anticipating key economic data to shape interest rate expectations for 2026 [1] - Contracts on the S&P 500 and Nasdaq 100 gained 0.4%, while Dow Jones Industrial Average contracts also rose by 0.4% [1] Sector Rotation - Concerns over inflated AI expectations have led investors to shift from tech stocks to value stocks, impacting the Nasdaq Composite and S&P 500, while the Dow remained relatively insulated due to fewer tech components [2] - Many strategists view this sector rotation positively, indicating a broadening support for stocks beyond just tech leadership [2] Economic Data and Federal Reserve Outlook - The final full week of trading for the year is marked by optimism for stocks, with expectations of monetary and fiscal stimulus from the reshaped Federal Reserve under President Trump's influence [3] - Key economic data releases this week include the November jobs report, an inflation reading, and an update on October retail sales, all critical for assessing the Fed's future rate decisions [4] Federal Reserve Leadership Changes - The future direction of the Federal Reserve is under scrutiny as Chair Jerome Powell's term ends in May, with Kevin Hassett and Kevin Warsh as potential successors [5] - Hassett indicated he would consider Trump's policy views if appointed, but emphasized that the Fed's rate decisions would remain independent [5]

Market Overview - US stock futures advanced as investors moved past a challenging week, anticipating key economic data to shape interest rate expectations for 2026 [1] - Contracts on the S&P 500 and Nasdaq 100 rose by 0.4%, while the Dow Jones Industrial Average also saw a 0.4% increase [1] Sector Rotation - Concerns over inflated AI expectations have led investors to shift from tech stocks to value stocks, impacting the Nasdaq Composite and S&P 500, while the Dow remained relatively insulated due to fewer tech components [2] - Many strategists view this sector rotation positively, indicating a broader support for stocks beyond just tech leadership [2] Economic Data and Federal Reserve Outlook - The upcoming week is critical for assessing the potential for further Federal Reserve easing, with significant economic reports delayed due to a government shutdown [4] - Key reports include the November jobs report, an inflation reading for November, and an update on October retail sales, all of which are closely monitored by investors [4] Federal Reserve Leadership Changes - The future direction of the Federal Reserve may be influenced by the end of Chair Jerome Powell's term in May, with potential candidates like Kevin Hassett and Kevin Warsh being considered for the position [5] - Hassett has indicated he would consider Trump's policy views if appointed, but emphasized that the Fed's rate decisions would remain independent [5]

Core Insights - A data-center fault at the Chicago Mercantile Exchange (CME) led to a halt in trading of futures and options, causing significant disruption across various markets [1][2] - The malfunction was attributed to cooling system issues at a data center operated by CyrusOne, with no clear timeline for the resumption of normal operations provided [1][2] Market Impact - The outage has already exceeded a similar technical error from 2019, highlighting the extensive influence of CME Group Inc. and its Globex electronic trading platform [2] - The disruption has raised concerns among market participants about the potential loss of a trading session, affecting millions of contracts linked to major indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 [2] Trading Challenges - The halt in trading particularly complicates the operations of equity-derivatives desks, as options on the S&P 500 with a notional value of approximately $600 billion were set to expire on the same day [6] - Traders are facing difficulties in rolling positions from one monthly contract to another, leading to frustration among those holding positions during the outage [4] Commodity Market Effects - Gold experienced erratic price movements, with bid-ask spreads significantly wider than usual, while US crude oil and palm oil markets were also impacted [5] - The timing of the disruption coincided with the expiry of gasoline and diesel futures, which could complicate settlement processes [5]

Core Points - Trading in U.S. index futures and other contracts was halted due to technical issues at CME Group, impacting investor sentiment ahead of the market's reopening after Thanksgiving [1][2][3] Group 1 - CME Group experienced disruptions in trading due to a cooling issue at CyrusOne data centers, which affected futures tracking major indexes like the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 [2][3] - The halt in trading occurred on Black Friday, a significant day for market activity, as investors were looking to gauge sentiment [1][2] - CME Group stated that support teams are working to resolve the issue and will provide updates to clients regarding pre-open details [3]

Group 1 - U.S. stock markets are expected to rise as investors focus on dovish comments from Federal Reserve Chair Jerome Powell, rather than concerns over U.S.-China trade tensions [1][2] - Futures for the Dow Jones Industrial Average increased by 193 points, or 0.4%, while S&P 500 futures rose by 0.6% and Nasdaq 100 contracts gained 0.9% [2] - The yield on the 10-year U.S. Treasury note decreased by 3 basis points to 4%, and gold futures surged by 1.3% to reach a record of $4,218 per ounce [2]

Market Performance - Stocks are expected to gain further, with investors remaining optimistic despite the ongoing government shutdown, which is anticipated to impact the release of key jobs data [1] - Futures for the Dow Jones Industrial Average increased by 96 points, or 0.2%, while S&P 500 and Nasdaq 100 futures both rose by 0.3% [1] - All three major indexes achieved record closing highs in the previous session [1] Bond and Commodity Markets - The yield on the benchmark 10-year note increased by 2 basis points to 4.10% [2] - Gold futures rose by 0.4% to $3,882 per ounce [2] - The U.S. dollar remained stable against a weighted basket of its peers [2]