U.S. equities closed mixed as the S&P 500 slipped to a three-week low (-0.24%) while the Nasdaq 100 gained (+0.26%) on strength in the Magnificent Seven, even as a slump in WTI crude to a 4.75-year low (down >2%) drove notable weakness across energy names. Economic data were mixed and broadly dovish for policy — Nov payrolls beat expectations (+64k vs +50k) but the unemployment rate rose to 4.6% (a four-year high), Nov average hourly earnings showed the smallest y/y gain in 4.5 years (+3.5%), retail sales were flat, and the Dec S&P manufacturing PMI fell to a five-month low (51.8) — helping push the 10-year Treasury yield down ~2 bps to 4.15%. Offsetting the dovish data, Atlanta Fed President Raphael Bostic warned that price pressures may persist through mid‑late 2026, keeping Fed policy uncertainty alive (markets assign ~24% odds of a 25bp cut in late Jan), while the yield curve has steepened following the Fed’s recent T‑bill purchases, leaving rates and sector leadership in focus for the week ahead.
U.S. equity benchmarks settled mixed as the S&P 500 closed down -0.24% and hit a three‑week low while the Nasdaq 100 rose +0.26%, driven by strength in the Magnificent Seven (Tesla +3%, Nvidia +0.81%, Microsoft +0.33%, Meta +1%). Macro releases were ambiguous: November nonfarm payrolls beat expectations at +64,000 (vs. +50,000) but the unemployment rate rose to 4.6% (four‑year high) and average hourly earnings grew only +3.5% y/y—the smallest increase in 4.5 years—while October retail sales were flat versus a +0.1% forecast and the Dec S&P manufacturing PMI slipped to 51.8 (five‑month low). Energy materially underperformed after WTI crude fell >2% to a 4.75‑year low, pressuring integrated and services names (Phillips 66 -6%, APA -5%, Baker Hughes -3%); that sector weakness was the primary drag on broader indices. Treasury real yields moved lower as the 10‑year fell ~2 bps to 4.15% and breakevens declined to ~2.23%, reflecting dovish growth/inflation signals even as Atlanta Fed President Bostic maintained a hawkish view that inflation may remain >2.5% into 2026. Market positioning and policy outlook are binary near term: markets price only a ~24% chance of a Jan cut, the Fed’s $40bn/month T‑bill purchases have steepened the curve, and upcoming Nov CPI and weekly claims will likely dictate risk‑on versus defensive rotations in the next sessions.
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Overall Sentiment
mildly negative
Sentiment Score
-0.28
Ticker Sentiment
