Stock Market Update

Equity futures point to a higher opening after Friday's session saw the major averages close with solid gains, though they still finished the week decidedly lower. Mega-cap and tech stocks have lagged in recent sessions, with investors rotating into more defensive holdings, particularly the health care sector. The mega-caps are mostly higher this morning, though the technology sector in particular has a recent habit of giving back early gains. 

Friday's rally was prompted by revamped expectations for a December rate cut, with New York Fed President John Williams (voting FOMC member) providing the dovish commentary that lifted the markets' expectations from around 40% to nearly 75%, according to the CME FedWatch tool. 

Tuesday's release of the September Producer Price Index will be one of the more anticipated happenings this week, which will see the market close on Thursday for the Thanksgiving Holiday, while Friday's session will end at 1:00 PM ET. 

In other macro news, Treasury Secretary Scott Bessent said in an interview that the U.S. is not at risk of recession and there will be "substantial" tax refunds next year, according to NBC News.

There are no economic data releases scheduled for today, and just a slim batch of earnings reports set to release this week. 

In corporate news: 

• President Trump will propose healthcare legislation this week that will extend Affordable Care Act subsidies for two years with new eligibility limits, according to Axios. 
• Eli Lilly (LLY 1,049.03, -10.67, -1.0%) and Novo Nordisk (NVO 42.79, -4.84, -10.16) are both lower in the premarket after NVO's Evoke phase 3 trials did not demonstrate a statistically significant reduction in Alzheimer's disease progression.
• Paramount (PSKY 16.07, +0.18, +1.1%) is reportedly winning the bidding war for Warner Brothers (WBD 23.02, -0.17, -0.7%), according to The New York Post. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly higher note while Japan's Nikkei was closed for a holiday. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: +2.0%, China's Shanghai Composite: +0.1%, India's Sensex: -0.4%, South Korea's Kospi: -0.2%, Australia's ASX All Ordinaries: +1.3%.

In news:

• New Bank of Japan policymaker Kazuyauki Masu spoke in favor of a rate hike but did not specify his preferred timing.
• South Korea and Taiwan are reportedly making a joint push to influence the Trump administration to lower tariffs on chip imports from both nations.
• The Reserve Bank of New Zealand will meet on Wednesday and the NZIER Shadow Board supports a 25-basis point rate cut.

In economic data:

• Singapore's October CPI 0.0% m/m (last 0.4%); 1.2% yr/yr (last 0.7%). October Core CPI 1.2% yr/yr (last 0.4%)

Major European indices are mixed with Italy's MIB (-0.8%) showing relative weakness amid pressure from defense contractor Leonardo. STOXX Europe 600: UNCH Germany's DAX: +0.6% U.K.'s FTSE 100: +0.2% France's CAC 40: UNCH Italy's FTSE MIB: -0.8% Spain's IBEX 35: +0.5%

In news:

• The U.K.'s Autumn budget will be delivered on Wednesday and Sky News reports that the growth outlook will be reduced.
• The French parliament rejected a draft budget for 2026 with the end-of-year deadline looming.
• Moody's affirmed the U.K.'s Aa3 rating with a Stable outlook and it raised Italy's rating to Baa2 from Baa3, revising the outlook to Positive from Stable.

In economic data:

• Germany's November ifo Business Climate Index 88.1 (expected 88.6; last 88.4). November Current Assessment 85.6 (expected 85.5; last 85.3) and Business Expectations 90.6 (expected 91.4; last 91.6)
• Swiss Q3 Employment Level 5.532 mln (last 5.532 mln)