AI-Led Equity Weakness and Commodity Pressure Amid Data Watch

Index Update:  U.S. markets closed slightly lower on Monday as losses in major AI-linked stocks weighed on indices, with Broadcom, Oracle and ServiceNow dragging on sentiment and reviving concerns over AI investment returns. Investors rotated toward more attractively valued sectors such as healthcare, utilities and consumer discretionary.

Market Movers:  On Monday, the top gainers were AMC Robotics Corporation. (+168.27%), followed by Artiva Biotherapeutics, Inc. (+90.91%). On the contrary, Treasure Global Inc. (-30.15%), and Beasley Broadcast Group, Inc. (-22.13%) declined the most the same day.

Commodities Update:  Oil prices slid to their lowest levels since early 2021, with WTI falling to about $56 per barrel and Brent dropping below $60, as optimism over a potential Russia–Ukraine peace deal and expectations of prolonged global oversupply weighed on markets. The prospect of lifted sanctions on Russian oil, rising output from OPEC+ and non-OPEC producers, and weak Chinese economic data signaling softer demand outweighed concerns about possible supply disruptions linked to U.S.–Venezuela tensions. Gold and silver prices eased on profit-taking after recent highs, with gold slipping to around $4,280 per ounce ahead of key U.S. economic data that could shape Federal Reserve policy expectations. While reduced safe-haven demand from improving geopolitical sentiment weighed on prices, ongoing support from strong central bank buying, ETF inflows, and solid industrial demand—particularly for silver—continues to underpin the broader precious metals outlook.

Macro Updates:  The U.S. economy is expected to add about 50,000 jobs in November after October payrolls were weighed down by federal workforce cuts, with gains likely led by healthcare, social assistance, and leisure sectors. The unemployment rate is forecast to hold at 4.4%, while wage growth is expected to remain modest at 0.3%.

Dollar Commentary:  The dollar index stayed near two-month lows as investors awaited delayed U.S. jobs data and other key economic releases that could shape Federal Reserve policy expectations. Markets continue to price in a high likelihood of steady rates in January, while attention also turned to Fed leadership speculation and upcoming policy decisions from major global central banks.

Futures Update:  U.S. stock futures moved lower as investors adopted a cautious stance ahead of several key economic data releases, including a postponed labor market report. Dow futures were down 185 points (0.4%), S&P 500 futures declined 47 points (0.7%), and Nasdaq 100 futures fell 261 points (1.0%).

Stocks initially moved higher at the start of Monday's trading session but quickly retreated early on. The major averages pulled back significantly from their early highs and spent much of the rest of the day near unchanged. The S&P 500 fell by 10.90 points, or 0.16%, closing at 6,816.52. From a technical standpoint, the index encountered resistance at critical levels and then declined, indicating the possibility of a near-term decline. The 14-day Relative Strength Index (RSI) remains around the midpoint, reflecting indecision at current levels. Key support is observed around 6,710, with resistance expected near 6,933.