The markets saw a mixed start to the week on Monday, with the Nasdaq Composite leading the charge as Tesla shares surged, lifted by optimism around regulatory developments for self-driving vehicles. The tech-heavy index rose 0.6%, while the S&P 500 gained 0.4%, and the Dow Jones Industrial Average dipped slightly, reflecting cautious sentiment ahead of key earnings reports and economic data. Market focus remained on Nvidia’s upcoming results, expected to provide further insight into the AI chip market, while retailers’ earnings are anticipated to shed light on consumer health. Amid lingering concerns about Federal Reserve policy and economic resilience, Wall Street balanced a rebound in tech stocks with subdued momentum in other sectors.

Key Takeaways:

  • Nasdaq Rises on Tesla Surge: The Nasdaq Composite advanced 0.6%, closing at 18,791.81, as Tesla shares soared 5.6% following reports that President-elect Donald Trump’s team is working on easing regulations for self-driving vehicles. This news significantly boosted sentiment in the tech sector, with other heavyweights like Apple and Netflix gaining 1.3% and 2.8%, respectively. Advanced Micro Devices added 3% on optimism around its AI-related prospects.
  • S&P 500 Edges Higher, Dow Dips: The S&P 500 gained 0.4%, closing at 5,893.62, supported by strength in tech stocks. The Dow Jones Industrial Average, however, fell 55.39 points, or 0.1%, to settle at 43,389.60, weighed down by mixed performances in industrials and consumer staples sectors. Investor caution lingered as market participants awaited key earnings and data releases later this week.
  • Mixed Performance in European Markets: European markets closed Monday on a subdued note, with the pan-European Stoxx 600 slipping 0.1%. Retail stocks led the decline, falling 0.88%, while miners provided a partial offset with a 0.6% gain. Germany’s DAX shed 0.2% for the second consecutive session, reflecting tepid sentiment ahead of the eurozone’s inflation and trade data due this week. Meanwhile, France’s CAC 40 eked out a 0.1% gain, closing at 7,278, supported by strength in luxury goods stocks. The UK’s FTSE 100 outperformed, rising 0.57%, or 45.71 points, to close at 8,109.32, driven by gains in mining and energy sectors. 
  • Asian Markets Show Divergent Trends: The Nikkei 225 dropped 1.09% to 38,220.85 as investors positioned themselves ahead of Japan’s upcoming inflation and trade data. In South Korea, the Kospi jumped 2.16% to 2,469.07, lifted by a 5.98% rally in Samsung Electronics following its announcement of a $7.19 billion stock buyback plan. Australia’s S&P/ASX 200 advanced 0.18% to 8,300.2, marking its third consecutive session of gains as investors reacted positively to recent economic resilience. Meanwhile, Hong Kong’s Hang Seng Index rose 0.82%, while mainland China’s CSI 300 slipped 0.46%, closing at 3,950.38, as concerns around policy uncertainty in the property sector lingered.
  • Oil Prices Surge on Supply Concerns: Crude oil prices jumped over 3% on Monday as a power outage at Norway’s Johan Sverdrup oilfield—the largest in Western Europe—halted production. Brent crude surged $2.26, or 3.18%, to close at $73.30 per barrel, while West Texas Intermediate climbed $2.14, or 3.19%, settling at $69.16 per barrel. 
  • Treasury Yields Remain Steady Amid Economic Uncertainty: US Treasury yields were largely flat on Monday as markets awaited fresh data and central bank commentary. The yield on the 10-year Treasury note dipped marginally to 4.418%, while the 2-year Treasury yield edged lower to 4.287%. Investors are closely watching this week’s housing and manufacturing reports for signals on the economy’s direction. Initial jobless claims and the preliminary November S&P Global Flash US Manufacturing PMI, due later this week, are expected to shed light on business activity.

FX Today

  • EUR/USD Struggles Below Key Resistance Levels: The EUR/USD pair closed at 1.0592 on Monday, showing a slight recovery but remaining unable to break through significant resistance levels. The 50-period SMA at 1.0639 continues to cap any upward momentum, with further resistance from the 100-period SMA at 1.0741 and the 200-period SMA at 1.0822. The pair remains in a broader downtrend, with immediate support at 1.0550. A break below this level could open the door for a deeper decline toward 1.0500. Conversely, a sustained move above the 50-period SMA could signal a recovery, but the resistance at 1.0741 and 1.0822 is expected to limit further upside.
  • GBP/USD Attempts Recovery Amid Bearish Outlook: GBP/USD edged higher to close at 1.2676 but remains under pressure as it struggles to break key resistance levels. The 50-period SMA at 1.2789 poses a significant barrier, followed by the 100-period SMA at 1.2875 and the 200-period SMA at 1.2963. Should bearish momentum resume, the pair may test support around 1.2600, a critical area for buyers. On the upside, a break above the 50-period SMA could spark a recovery, but stiff resistance at the higher moving averages is likely to cap gains. Until the pair clears these levels decisively, the outlook remains bearish.
  • USD/CHF Pulls Back After Testing Resistance: USD/CHF closed at 0.8833, retreating after testing resistance near the 0.8900 level earlier in the session. The 50-period SMA at 0.8814 now serves as immediate support, with the 100-period SMA at 0.8739 and the 200-period SMA at 0.8672 offering additional structural backing. A break above 0.8900 could pave the way for further gains, targeting 0.8950. However, failure to hold above the 50-period SMA may signal a deeper correction, with the pair likely to test the 100-period SMA.
  • AUD/USD Faces Challenges at Critical Moving Averages: AUD/USD closed at 0.6507, recovering slightly but facing resistance at key levels. The pair encountered selling pressure at the 50-period SMA at 0.6539 and the 100-period SMA at 0.6562, with the 200-period SMA at 0.6643 posing a significant challenge. If bearish sentiment returns, the pair could test immediate support near 0.6450. A break above the 50-period SMA might signal further recovery, but resistance at higher levels remains a formidable hurdle, keeping the outlook bearish for now.
  • Gold Bounces Back but Faces Resistance at Moving Averages: Gold prices closed at $2,610.20, rebounding from recent lows but struggling to overcome resistance at the 50-period SMA at $2,619.28. The 100-period SMA at $2,684.19 and the 200-period SMA at $2,679.41 remain critical barriers for further upside. If Gold fails to break above these levels, it may revisit support near $2,580. A breach below this support could open the door for a decline toward $2,550. Conversely, a close above the 50-period SMA could signal a potential recovery, but the metal would still need to clear resistance at the 100- and 200-period SMAs to shift sentiment toward a bullish outlook. Until these hurdles are overcome, the bias remains bearish.

Market Movers:

  • Tesla (TSLA) Rallies on Self-Driving Optimism: Tesla shares surged 5.6%, closing higher after a Bloomberg report suggested President-elect Donald Trump’s transition team is prioritizing a federal framework for self-driving vehicles. 
  • Super Micro Computer (SMCI) Soars Ahead of Nasdaq Deadline: Super Micro Computer closed up more than 13%, leading gains in both the S&P 500 and Nasdaq 100. The rally came as the company approached a critical deadline to either file its delayed 10-K annual report or submit a compliance plan to Nasdaq, aiming to avoid delisting.
  • CVS Health (CVS) Jumps on Boardroom Changes: CVS Health gained 5%, closing higher after the company announced plans to add four new board members. The move was seen as a positive step toward strengthening its corporate governance, which investors welcomed amid broader market uncertainty.
  • Advanced Micro Devices (AMD) Gains on IBM Partnership: AMD rose 3% following reports of a new agreement with IBM to supply MI300x accelerator chips for its cloud network. This development fuelled optimism about AMD’s growth in the AI and data centre markets, helping the stock outpace broader tech sector gains.
  • Moderna (MRNA) Climbs on Analyst Upgrade: Moderna shares advanced over 7% after HSBC upgraded the stock to “buy” from “hold,” citing strong growth potential and setting a new price target of $58. The positive analyst outlook spurred renewed investor interest in the biotech company.
  • Nike (NKE) Slumps on Reduced Price Target: Nike fell more than 2%, leading losses in the Dow Jones Industrial Average. The decline followed a TD Cowen report lowering the stock’s price target from $78 to $73, citing cautious channel checks and a more conservative outlook on consumer demand.
  • Nvidia (NVDA) Drops on Overheating Concerns: Nvidia shares slid 1.3% after reports indicated overheating issues with its Blackwell AI chips in server racks. Despite investor enthusiasm for the company’s upcoming earnings report, the news weighed on sentiment, particularly as Nvidia’s chips are a cornerstone of its AI growth strategy.
  • Palantir Technologies (PLTR) Declines Amid Insider Selling: Palantir dropped over 6% after SEC filings revealed that founder Alex Karp sold $3.99 million worth of shares between Wednesday and Friday. The insider sales raised concerns among investors, leading to a significant pullback in the stock.

As the trading week begins, markets are navigating a complex landscape marked by optimism in tech and energy sectors offset by concerns in consumer and industrial names. The Nasdaq Composite gained strength from a Tesla-driven rally, while the S&P 500 saw modest gains and the Dow struggled to maintain momentum. European and Asian markets offered a mixed performance, reflecting regional uncertainties ahead of inflation data and central bank commentary. Oil prices surged on supply concerns, and Treasury yields steadied as investors awaited fresh economic data to gauge the Federal Reserve’s next steps. With Nvidia’s much-anticipated earnings and key economic reports on the horizon, markets remain finely balanced, as investors seek clarity on growth prospects and sectoral resilience.