S&P 500 Set to Extend Climb as CME Trading Resumes

Описание: Ed Yardeni, President at Yardeni Research, discusses how strong GDP and subdued inflation are powering a year-end market rally.

The S&P 500 was on course to extend its biggest weekly advance since June after a technical outage at the Chicago Mercantile Exchange disrupted premarket trading.
The US benchmark was up 0.3% at the open. Earlier, a data-center fault had affected multiple markets, with the issue lasting longer than a similar outage in 2019. The Nasdaq 100 rose 0.4% Alphabet Inc. advanced more than 1.7%, while Amazon.com Inc. firmed as Black Friday shopping moved into full swing. 
Foreign-exchange markets, which had continued to traded throughout the day, saw no major volatility after the EBS platform reopened at 7:00 a.m.
“The spillover from the Thanksgiving holiday and the fact there is no US data may on the face of it lessen the impact,” said Daniel Noorian, head of execution and quantitative services at Liquidnet.
Expectations that the Federal Reserve will cut interest rates faster than initially anticipated fueled a late-month rebound.
The US stocks gauge had been down as much as 4.7% in November barely more than a week ago, as worries over stretched technology valuations rattled traders. Money markets were assigning roughly an 80% chance of a Fed cut in December before the CME disruption hit.
The CME halt was caused by a cooling system malfunction at a data center in the Chicago area, according to facility operator CyrusOne. 
“Some market participants will take advantage of possible differences in prices,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “The majority will pause trading for risk reasons until the issues are resolved, otherwise losses are possible.”
Moves across global equities were muted amid thin volumes. Europe’s Stoxx 600 edged up 0.1%, while an Asian gauge trimmed gains after a four-day rally. Treasuries and the dollar held steady.
In commodities, oil was on track for a fourth monthly decline as traders looked ahead to this weekend’s OPEC+ meeting and assessed how a possible Ukraine peace agreement might influence an already oversupplied market.
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