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Stock futures are pointing to a higher open for major indexes to kick off the holiday-shortened trading week; market participants are growing increasingly confident that the Federal Reserve will cut interest rates again next month; bitcoin regained some ground over the weekend after weeks of declines; U.S. officials are in Europe for tariff negotiations; and Ozempic-maker Novo Nordisk’s U.S.-listed shares are sinking following the results of its latest drug trial. Here’s what you need to know today.
Stock futures are moving higher this morning after experiencing significant volatility last week amid growing concerns about the possibility of an AI bubble. Stocks rose on Friday after a Federal Reserve official suggested support for an interest rate cut in December, but the three major indexes each posted big losses for the week. Futures tied to the Dow Jones Industrial Average were up 0.4% recently, while those linked to the benchmark S&P 500 index and the tech-heavy Nasdaq added 0.7% and 1%, respectively. The stock market will be closed on Thursday for Thanksgiving and will have an abbreviated trading session on Friday, but there are plenty of earnings reports and economic data in the next few days. The yield on the 10-year Treasury note, which affects borrowing costs for all sorts of loans, was at 4.04% recently, down slightly from Friday’s close and trading at its lowest level in nearly a month. Gold futures and crude oil futures were down slightly.
Market participants now expect the Federal Reserve to cut its benchmark interest rate next month, after New York Fed President John Williams on Friday said that there may be “room for a further adjustment”. Traders are now pricing in nearly a 75% cut at the Fed’s Dec. 9-10 policy meeting, up from around 40% a week ago, according to the CME FedWatch tool, which forecasts rate movements based on fed funds futures trading data. The Fed trimmed its key fed funds rate at each of the past two meetings — in September and October — amid rising concerns about the health of the labor market. Fed officials recently have been divided in their views about whether another cut is warranted, amid ongoing concerns about inflationary pressure.
Stocks tied to cryptocurrencies are gaining ground in premarket trading Monday, as bitcoin trades above the lows it hit at the end of last week. Bitcoin was at $86,000 recently, down from an overnight high of around $88,000 but up from Friday’s level near $81,000, which was its lowest level since April. After trading as high as $125,000 in early October, the digital asset has tumbled in recent weeks as investor risk appetite waned amid concerns about the AI trade and uncertainty about the Fed’s next move. Shares of Strategy (MSTR), the largest corporate holder of bitcoin, were up nearly 2% recently. Shares of bitcoin miner Mara Holdings (MARA) and crypto exchange Coinbase (COIN) were up nearly 3%.
American officials including Commerce Secretary Howard Lutnick are in Europe Monday for a new round of trade negotiations. Ahead of the meeting, European Union officials said that they did not expect to reach a deal to lower tariffs on steel and other goods in the first day of talks, per Bloomberg. As of their last agreement earlier this year, the U.S. currently has a 15% tariff on most goods coming into the country from the E.U., along with a 50% tax on a range of products made with steel and aluminum.
Shares of Danish drugmaker Novo Nordisk (NVO) are down sharply this morning after the Ozempic maker’s latest drug trial’s results disappointed. The company had been looking to determine whether semaglutide, the active ingredient in weight loss drugs Ozempic and Wegovy, could also slow the cognitive decline associated with Alzheimer’s disease. The trial’s goal was to slow the decline by at least 20%, CNBC reported, but Novo Nordisk said Monday that although the drug did improve unspecified “biomarkers” related to Alzheimer’s, it did not slow the progression of the disease itself. Analysts had been uncertain of how likely the trial was to achieve its goals, and about whether demand for Ozempic and Wegovy are still growing. Novo Nordisk’s U.S.-traded shares were down more than 10% ahead of the opening bell.
