"The futures are trading flat to modestly lower as shell-shocked traders return to start the new trading week. While the NASDAQ rallied to close Friday modestly higher at 22,900, up 0.13%, the Dow Jones Industrials dropped over 300 points, down 0.65% to close at 47,147, and the S&P 500 finished the week at 6734, down 0.05% on the day. The same concerns that drove stocks lower last week remain at the forefront, including fears of an AI bubble, circular financing, profligate government spending, and a stock market that is still very much in overbought territory. One item that certainly didn't help last week was Softbank's liquidation of its entire remaining NVIDIA Corp. ( NASDAQ: NVDA) position. It was revealed today that Peter Thiel has also sold his position in the stock in the third quarter. While we could see an extension of last week's selling into the Thanksgiving holiday, that could clear the way for a seasonal year-end Santa Claus rally to finish off 2025."
"Yields were higher across the curve on Friday as the Treasury market sold off hard to start the day, but rallied some late in the day. This sell-off was part of a bigger trend that had been impacting the bond market and occurred in tandem with a volatile stock market. The yield on the benchmark 10-year note finished the session on Friday at 4.15% while the 30-year long-bond was last seen at 4.75%. Yields on government debt have been trending higher recently as hopes for an additional 25-basis-point rate cut in December have diminished, as traders are now pricing in less than a 50% chance of a cut."
"The energy complex had plenty to cheer about on Friday as both the major benchmarks finished the day higher. Brent Crude closed the day at $64.29, up 2.19% and not to be outdone, West Texas Intermediate closed higher by 2.39% at $60.09. The only loser on Friday was Natural Gas, which closed down 1.72% at $4.57, likely due to some profit-taking as the commodity charged higher all wee"
Equity futures opened flat to modestly lower after a mixed finish: NASDAQ up slightly, Dow down over 300 points, and S&P 500 modestly lower. Persistent concerns include an AI bubble, circular financing, large government spending, and an overbought market. Large NVIDIA sales by SoftBank and disclosure of Peter Thiel's NVIDIA sale added selling pressure. Treasury yields rose, with the 10-year at 4.15% and the 30-year at 4.75%, as traders cut odds of a December 25bp rate cut to below 50%. Oil prices rose (Brent $64.29, WTI $60.09) while natural gas fell to $4.57 amid profit-taking.
Read at 24/7 Wall St.
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