US stock markets began the new trading week with measured gains on Monday, as investors adopted a watchful stance ahead of a flood of critical economic data that could redefine the path for interest rates and set the market's direction for the coming weeks.
US Markets Edge Higher Amid Tech Stabilisation
In early trading, the benchmark S&P 500 index rose 0.3%, while the Dow Jones Industrial Average climbed approximately 150 points, also a gain of 0.3%. The technology-focused Nasdaq Composite advanced 0.4%, showing signs of steadiness following a sharp sell-off last week that particularly hit artificial intelligence and tech-linked stocks.
Shares of chipmaker Nvidia, which bore the brunt of the recent AI-driven market correction, saw a modest recovery, rising around 1.5%. The broader technology sector appeared to be in a consolidation phase after recent volatility sparked by investor concerns over hefty capital expenditure requirements and rich valuations.
Investor Focus Shifts to Macroeconomic Triggers
The market's attention is now firmly locked on two major US economic releases scheduled for this week. The US government is set to publish its delayed November jobs report on Tuesday, followed by the latest consumer inflation (CPI) numbers on Thursday. Analysts believe these datasets will be pivotal in shaping expectations around the Federal Reserve's future interest-rate decisions and broader risk sentiment in global financial markets.
This caution follows a pressured week for US equities, where the S&P 500 recorded its worst single-day performance in three weeks. Significant declines in AI-heavyweights like Broadcom and Oracle, despite reporting strong earnings, had shaken investor confidence and prompted a wave of profit-taking.
Asian Markets Slip, Europe Gains
In contrast to the tentative positivity on Wall Street, most Asian equity markets closed lower. Investors in the region grappled with mixed economic signals and prepared for a potential interest-rate hike by the Bank of Japan (BoJ).
Japan's Nikkei 225 fell 1.3% to 50,168.11. This decline occurred despite a positive quarterly "tankan" survey from the BoJ showing improved sentiment among the nation's large manufacturers. Market analysts noted that optimism about potentially lower US tariffs on Japanese exports helped some stocks, but expectations of a 25-basis-point rate hike by the BoJ later this week weighed heavily on risk assets.
The anticipation of higher Japanese interest rates also triggered a sharp slide in Bitcoin, which briefly dropped below $88,000 before paring some losses to trade near the $90,000 mark.
Chinese markets retreated after fresh data indicated ongoing softness in domestic demand. Investment in fixed assets fell 2.6% year-on-year in November, while growth in retail sales and industrial output remained subdued. Consequently, the Shanghai Composite slipped 0.6%, and Hong Kong's Hang Seng index dropped 1.3%.
Other major Asian markets also ended in the red: South Korea's Kospi fell 1.8%, Australia's S&P/ASX 200 eased 0.7%, and Taiwan's benchmark index declined 1.2%. India's Sensex was largely flat during a subdued trading session.
European markets, however, opened on a stronger note, tracking positive US futures. Germany's DAX rose 0.3%, France's CAC 40 gained 0.8%, and Britain's FTSE 100 advanced 0.6%.
Commodities and Currencies
In the commodities market, US benchmark crude oil inched up to around $57.50 per barrel, while Brent crude traded near $61.20. In currency trading, the US dollar weakened slightly against the Japanese yen, while the euro edged higher.
The week ahead promises high volatility as global traders digest the incoming US economic data, which will provide crucial clues about the health of the world's largest economy and the likely monetary policy response from its central bank.
