Markets Steady Ahead of Key U.S. Data as Commodities and Yields Hover Near Extremes

Index Update:  Markets are focused on a data-heavy week with key US releases, including jobs and CPI, alongside Fed commentary and developments on the next Fed Chair appointment. In premarket trading, megacaps were mixed, with gains in Nvidia, Amazon, Alphabet, Tesla and a modest rebound in Broadcom, while Microsoft, Apple and Meta were largely unchanged.

Market Movers:  On Friday, the top gainers were TryHard Holdings Limited. (+57.72%), followed by RYTHM, Inc. (+47.73%). On the contrary, CCH Holdings Ltd (-82.47%), and Jiuzi Holdings, Inc. (-52.04%) declined the most the same day.

Commodities Update:  Oil prices remained near two-month lows on Monday, with WTI around USD 57.4 per barrel and Brent near USD 61.1, weighed down by persistent oversupply concerns despite geopolitical risks from ongoing Russia-Ukraine conflict, Middle East tanker seizures, and tighter US sanctions on Venezuela. Gold climbed about 1% to roughly USD 4,340 per ounce, nearing a record high on expectations of further US rate cuts, strong central-bank buying, ETF inflows, and safe-haven demand, while investors await key US jobs and inflation data. Silver rose above USD 63 per ounce, approaching new highs and up sharply year-to-date, supported by tight inventories, strong industrial demand, critical-minerals status, and ETF inflows, though recent pullbacks reflect valuation concerns.

Macro Updates:  The dollar index hovered near 98.4 after three weeks of declines as markets awaited delayed US data, including jobs, retail sales and CPI. The move follows last week’s Fed rate cut and mixed signals from policymakers on the future policy path, while investors also monitored President Trump’s potential picks for the next Fed Chair.

Bonds Commentary:  The US 10-year Treasury yield eased to about 4.16% on Monday, staying near recent lows as markets awaited a heavy slate of US economic data, including jobs, CPI and retail sales, to assess the outlook for Fed policy after three consecutive rate cuts. Investors are also watching global central bank decisions this week, with the ECB expected to hold rates, the BoE likely to cut, and the BoJ anticipated to raise rates.

Futures Update:  U.S. equity futures edged higher early Monday ahead of a data-heavy final full trading week of the year, with Dow, S&P 500 and Nasdaq 100 futures all up about 0.4–0.5%. The gains follow a weaker close last week, when disappointing earnings updates from AI-linked heavyweights Oracle and Broadcom raised concerns over the durability of elevated spending on artificial intelligence.

Following the mixed performance observed during Thursday's session, the stock experienced a significant downward move on Friday. The S&P 500 declined by 73.59 points, or 1.97%, closing at 6,827.42. From a technical perspective, the index faced resistance at key levels and dropped, indicating the potential for a near-term decline. However, in today's session, there is a possibility of a relief rally. The 14-day Relative Strength Index (RSI) remains around the mid-point, suggesting indecision at current levels. Key support is seen around 6,710, while resistance is expected near 6,933.