S&P Futures Halted Due to CME Outage

December S&P 500 E-Mini futures (ESZ25) were indicated up +0.10% before a technical outage at the Chicago Mercantile Exchange disrupted trading.

Trading of futures and options on the CME was halted for hours on Friday, disrupting some of the world’s most liquid futures markets. The halt hit U.S. Treasuries and equity futures, along with commodities and other asset classes. “Due to a cooling issue at CyrusOne data centers, our markets are currently halted,” according to CME Group’s website. “Support is working to resolve the issue in the near term and will advise clients of pre-open details as soon as they are available,” it said.

Investors turned to exchange-traded funds tied to Wall Street’s major indexes as a barometer of broader market sentiment. SPDR’s S&P 500 ETF (SPY) was up +0.28% in pre-market trading.

Today, the U.S. stock markets will be open for half a session, with trading ending at 1 p.m. Eastern Time.

In Wednesday’s trading session, Wall Street’s three main equity benchmarks ended in the green. Robinhood Markets (HOOD) surged over +10% and was the top percentage gainer on the S&P 500 after announcing it had acquired a majority stake in LedgerX, a U.S.-based derivatives exchange, giving it entry into the prediction markets. Also, chip stocks gained ground, with Marvell Technology (MRVL) climbing more than +5% and Advanced Micro Devices (AMD) rising over +3%. In addition, Dell Technologies (DELL) advanced more than +5% after the IT and PC giant raised its full-year revenue guidance. On the bearish side, Workday (WDAY) slumped over -7% and was the top percentage loser on the S&P 500 as the human resources software provider’s Q3 subscription revenue disappointed investors.

Economic data released on Wednesday showed that U.S. durable goods orders rose +0.5% m/m in September, in line with expectations, and core durable goods orders, which exclude transportation, rose +0.6% m/m, stronger than expectations of +0.2% m/m. Also, the number of Americans filing for initial jobless claims in the past week unexpectedly fell by -6K to a 7-month low of 216K, compared with the 226K expected. At the same time, the U.S. Chicago PMI fell to 36.3 in November, weaker than expectations of 44.3.

“Overall, it was a stronger-than-expected round of [economic] data that has reinforced the notion that there are crosscurrents and mixed performance in the real economy. That being said, there is nothing within the reports that will derail the FOMC from cutting by 25 basis points on Dec. 10,” according to Ian Lyngen at BMO Capital Markets.

The Fed said Wednesday in its Beige Book survey of regional business contacts that U.S. economic activity was little changed in recent weeks. “Outlooks were largely unchanged overall. Some contacts noted an increased risk of slower activity in coming months, while some optimism was noted among manufacturers,” according to the Beige Book. The report noted that employment declined slightly and prices increased at a moderate pace. The report also said multiple districts, including New York, Atlanta, and Minneapolis, reported that spending by higher-income consumers remained resilient, while spending weakened among low- and middle-income households. Economists stated that nothing in the report challenged expectations for a December rate cut.

Meanwhile, U.S. rate futures have priced in an 84.7% probability of a 25 basis point rate cut and a 15.3% chance of no rate change at the December FOMC meeting.

The U.S. economic data slate is empty on Friday.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note was last indicated at 4.010%, up +0.35%.

The Euro Stoxx 50 Index is down -0.02% this morning, hovering around the flatline as investors refrain from making big bets ahead of the weekend and a holiday-shortened trading session in the U.S. Bank stocks underperformed on Friday. At the same time, energy and mining stocks gained ground. The benchmark index is on track to post its strongest weekly advance since early October, supported by growing expectations for a Fed rate cut next month and signs of progress in Ukraine peace talks. Preliminary data released on Friday showed that the annual inflation rate in France and Italy held steady in November, while Spain’s inflation eased slightly, keeping the European Central Bank on track to hold rates steady. Separately, data showed that the number of people out of work in Germany rose less than expected in November, highlighting a sluggish recovery in the labor market. Investors now await preliminary inflation data from Germany due later in the session. In other news, German Chancellor Friedrich Merz said on Friday that he plans to send a letter to the EU Commission urging it to preserve technological flexibility for the automotive industry beyond the bloc’s planned 2035 ban on new combustion-engine vehicles. In corporate news, Delivery Hero SE (DHER.D.DX) climbed over +7% after Bloomberg reported that several major shareholders were pressuring management to explore a sale of the company or parts of its business.

Germany’s Retail Sales, Germany’s Unemployment Change, Germany’s Unemployment Rate, France’s CPI (preliminary), France’s GDP, Spain’s CPI (preliminary), Italy’s GDP, and Italy’s CPI (preliminary) data were released today.

The German October Retail Sales unexpectedly fell -0.3% m/m, weaker than expectations of +0.1% m/m.

The German November Unemployment Change stood at 1K, stronger than expectations of 4K.

The German November Unemployment Rate was 6.3%, in line with expectations.

The French November CPI fell -0.1% m/m and rose +0.9% y/y, weaker than expectations of no change m/m and +1.0% y/y.

The French GDP came in at +0.5% q/q and +0.9% y/y in the third quarter, in line with expectations.

The Spanish November CPI rose +3.0% y/y, in line with expectations.

The Italian GDP arrived at +0.1% q/q and +0.6% y/y in the third quarter, stronger than expectations of no change q/q and +0.4% y/y.

The Italian November CPI fell -0.2% m/m and rose +1.2% y/y, weaker than expectations of -0.1% m/m and +1.3% y/y.

Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.34%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.17%.

China’s Shanghai Composite Index closed higher today as investors continued to favor AI-related stocks. Semiconductor and non-ferrous metal stocks led the gains on Friday. At the same time, real estate stocks extended their declines, with China Vanke dropping more than -1% on mounting debt concerns. Ratings agency S&P Global on Friday downgraded China Vanke’s long-term issuer credit rating to CCC- from CCC and put the firm on CreditWatch with negative implications. The benchmark index posted gains for the week. Meanwhile, JPMorgan Chase & Co. upgraded its view on China’s stocks to “Overweight,” saying the potential for sizable gains next year now outweighs the risk of significant losses. “China has given back most of its outperformance this year — making for an attractive entry point. Next year will bring multiple support factors such as AI adoption, consumption measures, and governance reforms,” the bank’s strategists wrote in a note. In corporate news, Anta Sports Products and Li Ning both fell in Hong Kong after Reuters reported that the two firms are among those considering a possible takeover of troubled German sportswear maker Puma. Investor attention now shifts to China’s November factory activity data, set for release on Sunday, for further insight into the economy’s health. Market participants also look ahead to the Politburo meeting and the Central Economic Work Conference (CEWC) in December for signals on next year’s policy agenda. There is optimism that the CEWC could bring more fiscal support.

Japan’s Nikkei 225 Stock Index closed slightly higher today. Machinery and steel stocks outperformed on Friday. The benchmark index notched a solid weekly gain but posted its weakest November performance since 2011. Government data released on Friday showed that core consumer inflation in Japan’s capital remained well above the Bank of Japan’s 2% target in November as companies continued to pass through higher costs, primarily for food. Separate data showed that Japan’s industrial output unexpectedly rose in October from the previous month, and retail sales also rose much more than expected, despite headwinds from tariffs and inflation. In addition, data showed that Japan’s unemployment rate held steady at 2.6% in October. Persistent inflation and a tight labor market indicate that “the Bank of Japan will resume its tightening cycle over the next couple of months,” according to Marcel Thieliant, head of Asia-Pacific at Capital Economics. Another factor supporting a rate hike is the yen’s rapid weakening in recent weeks, which has fueled concerns about rising import costs. There is only one remaining opportunity for the BOJ to act this year, at its December 18-19 meeting, with economists divided over whether it will make a move then or wait until the first month of 2026. Meanwhile, benchmark Japanese bonds fell on Friday amid expectations that the government will issue more of the securities to finance large new spending. Japanese Prime Minister Sanae Takaichi’s government on Friday finalized a $117 billion supplementary budget for this fiscal year to fund a massive stimulus package. In other news, foreign investors offloaded a net 348.7 billion yen worth of Japanese stocks in the week ended November 22nd, likely locking in some profits, according to data from the Ministry of Finance. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -7.22% to 27.61.

The Japanese November Tokyo Core CPI rose +2.8% y/y, stronger than expectations of +2.7% y/y.

The Japanese October Industrial Production (preliminary) unexpectedly rose +1.4% m/m, stronger than expectations of -0.5% m/m.

The Japanese October Retail Sales rose +1.7% y/y, stronger than expectations of +0.8% y/y.

The Japanese October Unemployment Rate was 2.6%, weaker than expectations of 2.5%.

Pre-Market U.S. Stock Movers

The Magnificent Seven stocks are moving higher in pre-market trading, with Alphabet (GOOGL) rising over +1% and Amazon.com (AMZN) gaining about +0.9%.

Chip stocks advanced in pre-market trading, with Micron Technology (MU) climbing more than +3% and Advanced Micro Devices (AMD) rising nearly +1%.

Canadian National Railway (CNI) rose about +0.5% in pre-market trading after CIBC upgraded the stock to Outperformer from Neutral.

CME Group (CME) fell -0.8% in pre-market trading after a data-center issue halted trading of futures and options on the CME.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Friday - November 28th

None.