Stocks looked set to edge higher on Monday, clawing back some of their recent losses as investors bought the dip ahead of a slew of economic data and some crucial central bank policy decisions.
Futures tracking the Dow Jones Industrial Average rose 236 points, or 0.5%. S&P 500 futures added 0.5%, and contracts tied to the tech-heavy Nasdaq 100 were also up 0.5%.
The three major indexes took a beating on Friday, after so-so earnings from software developer Oracle and chip maker Broadcom stoked fears about lofty artificial intelligence valuations.
“The weakest AI stories are increasingly being punished rather than the pre-September period when AI all went up together,” Deutsche Bank analyst Jim Reid said on Monday.
There could be plenty more big swings over the final full trading week of 2025. Shutdown-delayed employment reports for October and November due out Tuesday will give investors a better sense of how the labor market is faring, which could be key to determining if the Federal Reserve carries on cutting interest rates next year.
The European Central Bank, Bank of England, and Bank of Japan are all set to make policy decisions this week. The BoJ could have the biggest impact on the U.S.–if it opts to hike borrowing costs, that could trigger the unraveling of the so-called yen carry trade, which could drive up Treasury yields.
The yield on the benchmark 10-year U.S. Treasury note was 1 basis point lower at 4.18% on Monday. Gold jumped 1.1% to $4,377 an ounce, and the dollar was flat against a weighted basket of its peers. Large-cap cryptocurrency Bitcoin slipped 0.3% over the past 24 hours, to trade at $89,868.
