Equities Advance, Commodities Rally on Geopolitical Tensions, Dollar and Yields Steady

Index Update:  U.S. equities closed higher on Monday, led by technology stocks, with gains across major indices. Nvidia rose on reports of planned AI chip shipments to China, while Oracle and Micron also posted strong advances. Investors now await key economic data releases, with markets set for an early close on Wednesday and a full closure on Thursday for Christmas.

Market Movers:  On Monday, the top gainers were Starfighters Space, Inc. (+370.85%), followed Sidus Space, Inc. (+97.41%). On the contrary, AMC Robotics Corporation. (-28.99%), and Dogwood Therapeutics, Inc. (-24.96%) declined the most the same day.

Commodities Update:  Oil prices held steady on Tuesday, with WTI near USD 57.9 per barrel and Brent around USD 62, supported by ongoing geopolitical tensions involving Venezuela and disruptions to Russian energy infrastructure. However, despite recent gains, crude prices remain on track for an annual decline due to expectations of a growing global supply surplus. Gold and silver surged to new record highs on Tuesday, supported by strong safe-haven demand amid rising U.S.–Venezuela tensions and expectations of U.S. interest rate cuts. Gold climbed above USD 4,480 per ounce, marking its 50th record this year and extending year-to-date gains to about 70%, while silver hit an all-time high near USD 69.5 per ounce, up over 140% this year. Continued central bank buying, ETF inflows, robust industrial demand, and tighter inventories further underpinned precious metal prices.

Macro Updates:  The dollar index slipped toward 98, its lowest level since early October, pressured by expectations of future Federal Reserve rate cuts and mixed signals from Fed officials. The greenback also weakened amid strong safe-haven demand for precious metals, rising U.S.–Venezuela tensions, and a sharper decline against the yen following a Bank of Japan rate hike.

Bonds Commentary:  The U.S. 10-year Treasury yield was steady at 4.16% on Tuesday as investors assessed the monetary policy outlook and upcoming Treasury auctions. Markets continue to price in two rate cuts in 2026, though Federal Reserve officials remain split between supporting further easing and pausing to evaluate the impact of earlier cuts.

Futures Update:  U.S. stock futures were largely unchanged on Tuesday following a solid start to the shortened trading week, with Dow futures rising by less than 0.01% and S&P 500 and Nasdaq 100 futures posting modest gains of 0.03% and 0.1%, respectively.

Building on the strong upward momentum seen over the past two sessions, stocks mostly advanced during Monday's trading. Major averages all moved higher following a mixed performance in the previous week. The S&P 500 gained 43.99 points, or 0.64%, closing at 6,878.48. From a technical perspective, the index found support at key levels and steadily moved upward, indicating the potential for a sustained upward trend in the near term. The 14-day Relative Strength Index (RSI) has crossed above the midpoint, further supporting a positive bias. Important support levels are around 6,790, with resistance expected near 6,940.