The yield on 10-year Treasuries declined two basis points to 4.15%
by Andre Janse van Vuuren and Sagarika Jaisinghani
US stocks are holding their ground after a strong run as traders await some of the remaining data sets of 2025 to see whether they materially shift expectations for interest-rate cuts.
The S&P 500 is poised to open little changed after a three-day rally that has pushed the benchmark within reach of a new all-time high. European stocks were buoyed by a 7% surge in the shares of Novo Nordisk A/S after the Danish firm won US approval to sell a pill version of its obesity drug Wegovy.
Gold extended its record-breaking run, setting its sights on $4,500 an ounce. Silver and copper also advanced. US Treasuries steadied after days of losses, with the 10-year yield falling two basis points to 4.15%. The dollar, meanwhile, headed for its lowest level since October.
Equity markets have shaken off recent volatility as traders position for a seasonal year-end rally, with cooling inflation and mixed jobs data leading markets to price in at least two Federal Reserve rate cuts in 2026. Market watchers are now looking for another year of strong S&P 500 gains, supported by expectations for solid earnings and bets on policy easing.
While Tuesday’s delayed third-quarter US gross domestic product print will likely be too dated to offer a clear read on current conditions, traders will also focus on consumer sentiment data after November showed a sharp slump.
“Volatility is sitting at the lows of the year, while credit spreads are among the most compressed we’ve seen in decades,” said Alberto Tocchio, portfolio manager at Kairos Partners. “That dynamic is helping sustain the current market bonanza, especially in an environment where trading volumes are falling sharply and many discretionary players are already on the sidelines.”
The yen led advances among major currencies against the dollar, rising past the 156 level after Finance Minister Satsuki Katayama issued her strongest warning yet to speculators following a central bank rate hike last week. The Swiss franc and British pound also gained significant ground.
Brent was near $62 a barrel after rising about 5% over the previous four sessions as the US continued its blockade of crude shipments from Venezuela.
What Bloomberg’s Strategists Say...
“FX traders are buying into year-end Goldilocks theme which is helping to nudge the greenback lower and that’s a timely gift for Japanese authorities. EUR/USD’s drive toward the 1.18 zone is lifting all G-10 peers, with the yen included.”
— Mark Cranfield, Markets Live strategist. Click here for the full analysis.
Corporate News
- Novo Nordisk A/S won approval to sell a pill version of its blockbuster obesity shot Wegovy in the US, a crucial step in its effort to defend its market share from rival Eli Lilly & Co.
- Larry Ellison is throwing his personal fortune behind Paramount Skydance Corp.’s bid for Warner Bros. Discovery Inc., aiming to give his son’s company an advantage in a fiercely contested takeover battle with Netflix Inc.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.2% as of 9:22 a.m. London time
- S&P 500 futures were little changed
- Nasdaq 100 futures were little changed
- Futures on the Dow Jones Industrial Average were unchanged
- The MSCI Asia Pacific Index rose 0.6%
- The MSCI Emerging Markets Index rose 0.1%
Currencies
- The Bloomberg Dollar Spot Index fell 0.3%
- The euro rose 0.2% to $1.1784
- The Japanese yen rose 0.7% to 155.88 per dollar
- The offshore yuan rose 0.2% to 7.0159 per dollar
- The British pound rose 0.3% to $1.3505
Cryptocurrencies
- Bitcoin fell 1% to $87,353.59
- Ether fell 1.1% to $2,954.97
Bonds
- The yield on 10-year Treasuries declined two basis points to 4.15%
- Germany’s 10-year yield declined three basis points to 2.87%
- Britain’s 10-year yield declined three basis points to 4.51%
Commodities
- Brent crude was little changed
- Spot gold rose 0.9% to $4,482.94 an ounce
This story was produced with the assistance of Bloomberg Automation.
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