Market Overview - US stock futures showed muted movements as a holiday-shortened week concluded, with Dow Jones futures up 0.1%, S&P 500 futures up 0.2%, and Nasdaq 100 futures up 0.3% [1] - The CME Group restored operations after a significant outage that disrupted trading in various markets, including US Treasurys and crude oil, which lasted until 8:30 a.m. ET [2] Trading Sentiment - Stocks experienced a sharp rebound as traders increased bets on a potential interest rate cut by the Federal Reserve in December, with renewed confidence in AI driving tech stocks [3] - However, Wall Street indexes are facing a losing month, primarily due to a decline in megacap tech stocks as investors reassess the profitability of AI-driven businesses [4] Monthly Performance - By the end of November, both the Dow and S&P 500 were slightly lower, indicating an end to a six-month winning streak, while the Nasdaq was down 2%, poised to break a seven-month streak of gains [4] Future Predictions - Analysts are releasing stock market predictions for the upcoming year, with Deutsche Bank forecasting the S&P 500 to reach 8,000 by the end of 2026, while HSBC and JPMorgan expect it to hover around 7,500 [5]

Core Viewpoint - The dismissal of Federal Reserve governor Lisa Cook by President Trump over alleged mortgage fraud has led to market volatility, raising concerns about the independence of the Federal Reserve and its implications for monetary policy [1][6][7]. Market Reactions - Stock markets and bonds experienced a sell-off following the announcement, with US government bond yields rising, particularly the 30-year bond which surpassed 5.6%, nearing a 27-year high [3]. - The dollar initially dropped nearly 0.4% but largely reversed this decline, while gold prices spiked by 1% and maintained most of the overnight gain [4]. Federal Reserve Implications - Cook's potential dismissal would create another vacancy on the Federal Reserve board, which Trump is expected to fill with an economist favoring interest rate cuts [3]. - The current situation raises concerns about "intensifying fiscal dominance risks" within the Federal Reserve, as noted by Deutsche Bank forex strategist George Saravelos [7]. Independence of the Federal Reserve - Analysts suggest that Trump's actions may undermine confidence in the Federal Reserve's independence, which is crucial for maintaining transparent and rules-based capital markets [6]. - The attempted removal of Cook is described as unprecedented, potentially signaling the end of central bank independence in the US [7][8].