Stock Market Update

Equity futures point to a modestly higher start to kick off this week's action. The stock market had a bumpy previous week, with mega-cap tech seeing a pullback in momentum that was amplified by a sharp decrease in expectations for another rate cut at the December FOMC meeting. 

The midweek sell-off was somewhat mitigated by a resilient effort from tech stocks on Friday that saw the major averages ultimately finish mixed for the week. 

Mega-cap tech is mixed in the premarket, with NVIDIA's (NVDA 187.93, -2.24, -1.2%) earnings report on Wednesday the next key test for the direction of the AI trade. 

Additionally, a slate of big-box retailers will report this week. 

There is no consequential economic data on the docket today, but Thursday brings the delayed release of the September Nonfarm Payroll Report. 

In corporate news:

• Senator Bill Cassidy in an interview, said he is working with the White House on a healthcare plan that would involve sending subsidies to Americans instead of insurance companies, according to CBS News. 
• Apple (AAPL 269.75, -2.66, -1.0%) CEO Tim Cook could step down as early as next year, according to Financial Times. 
• Alphabet (GOOG 288.63, +11.65, +4.2%) trades higher in the premarket after Berkshire Hathaway (BRK.B 510.60, +1.66, +0.3%) revealed a $4.9 billion stake in the company, according to Reuters. 
• Tesla (TSLA 400.92, -3.43, -0.9%) is requesting that suppliers exclude Chinese parts from the production process, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Monday on a mixed note. Japan's Nikkei: -0.1%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: -0.5%, India's Sensex: +0.5%, South Korea's Kospi: +1.9%, Australia's All Ordinaries: +0.1%.

In news:

• South Korea's Kospi (+1.9%) was the winning standout, rallying on the back of strength in its chip stocks, namely Samsung Electronics and SK Hynix, following reports of plans to step up domestic investment in a big way over the next five years.
• Samsung, meanwhile, reportedly boosted the prices of some server memory chips by up to 60% in November compared to September.
• Japan registered some better-than-feared Q3 GDP numbers, yet that positive was overshadowed by geopolitical angst tied to news that China has warned its citizens against traveling to Japan "for safety reasons."
• Separately, Japan's 10-yr JGB yield hits its highest level since 2008.
• Treasury Secretary Bessent said the U.S. is targeting completion of a rare earths trade agreement with China by Thanksgiving, with the expectation that the U.S. military won't be excluded from the deal.

In economic data:

• Japan's Q3 GDP -0.4% qtr/qtr (-0.6% expected; 0.6% last) and -1.8% yr/yr (-2.5% expected; 2.3% last); September industrial production 2.6% m/m (2.2% expected; -1.5% last); September capacity utilization 2.5% m/m (-2.3% last)
• South Korea's October exports 3.5% yr/yr (3.6% last) and imports -1.5% yr/yr (-1.5% last)

Major European indices are lower in Monday's session after starting the day on a higher note. STOXX Europe 600: -0.5%, Germany's DAX: -0.7%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.5%, Spain's IBEX 35: -1.0%.

In news: 

• There is ongoing uncertainty over the U.K.'s course for its fiscal policy
• Switzerland's Q3 GDP showed a contraction in economic activity
• The European Commission is forecasting 1.2% GDP growth for the eurozone in 2026 versus 1.3% in 2025, with its inflation forecast marked down to 1.9% versus 2.1% in 2025.
• Separately, advertising firm WPP is an outperformer amid a Sunday Times report that it is drawing takeover interest.

In economic data:

• U.K.'s November Rightmove House Price Index -1.8% m/m (0.3% last) and -0.5% yr/yr (-0.1% last)
• Italy's October CPI -0.3% m/m (-0.3% expected; -0.2% last) and 1.2% yr/yr (1.2% expected; 1.6% last)
• Switzerland's Q3 GDP -0.5% qtr/qtr (0.1% last)