In bond markets, yields rose almost everywhere after the BOJ lifted its key rate to the highest level in more than three decades.
by Andre Janse van Vuuren and Macarena Muñoz
US stocks are poised to end a choppy week on a stronger note as traders gear up for the year-end stretch that typically delivers equity gains. Global bond yields advanced after the Bank of Japan’s interest-rate hike.
S&P 500 futures rose 0.3% after the benchmark posted its biggest gain of the month on Thursday. Nasdaq 100 contracts climbed 0.5%. Oracle Corp., long a focal point of concerns that the artificial-intelligence rally had become overheated, rose more than 5% in premarket trading.
Friday’s options expiries represent the last major event before markets enter the holiday period, when low volumes, seasonal flows and limited news are traditionally supportive of stocks. Before that, however, a record $7.1 trillion in notional open interest will roll off as contracts expire across the US options market.
Stocks have swung in recent weeks as optimism over Federal Reserve interest-rate cuts and strong earnings have clashed with fears that the AI-driven rally is vulnerable to a correction. Some strategists warn that while the broader backdrop remains favorable for equities, volatility may persist.
“While the conditions for a Santa rally are broadly in place, markets may need a fresh catalyst,” said Francisco Simón, European head of strategy at Santander Asset Management. “In that context, a renewed positive trigger — potentially linked to encouraging news in the AI space — could help reignite momentum.”
In bond markets, yields rose almost everywhere after the BOJ lifted its key rate to the highest level in more than three decades and signaled that more hikes could be in the offing. Japan’s 10-year yield climbed to the highest level since 1999, with the BOJ making clear that the tightening cycle will continue if the economy performs as expected.
US Treasury 10-year yields rose two basis points to 4.14%. Germany’s 30-year rate extended an advance and traded at the highest level since 2011.
Despite the rise in yields, the yen led losses among major currencies against a stronger dollar, as traders were left disappointed by the lack of clear guidance on when BOJ officials might tighten policy again.
“The market had expected a hawkish hike from the BOJ, with the expectation of clarifying its stance on narrowing the neutral rate range and future rate hike path,” ING Bank’s Min Joo Kang and Chris Turner wrote in a note. “However, both the BOJ and Ueda remained quite vague on this matter, which likely caused disappointment in the market.”
In commodities, oil headed for a second weekly loss despite tensions around a US naval blockade of sanctioned tankers calling at Venezuela, with futures weighed down by expectations for a global surplus. Brent has slipped more than 2% this week.
Corporate Highlights:
- BBVA SA said it will carry out its largest share buyback ever as it seeks to draw a line under its failed bid for Banco Sabadell SA.
- Nike Inc. shares sank after the company warned that sales will decline this quarter amid persistent weakness in China and at its Converse brand.
- TikTok Chief Executive Officer Shou Chew told employees that the social media app’s parent company, ByteDance Ltd., signed binding agreements to create a US joint venture majority-owned by American investors.
- ICICI Prudential Asset Management Co. jumped in its Mumbai trading debut after an initial public offering that raised 106 billion rupees ($1.2 billion), potentially marking the year’s final major listing.
- Apple Inc. is making changes to its iOS software in Japan to comply with a new local law aimed at fostering competition, part of broader efforts by the iPhone maker to adapt to regulations around the world.
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.3% as of 5:27 a.m. New York time
- Nasdaq 100 futures rose 0.5%
- Futures on the Dow Jones Industrial Average rose 0.1%
- The Stoxx Europe 600 rose 0.1%
- The MSCI World Index was little changed
Currencies
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro was little changed at $1.1715
- The British pound was little changed at $1.3384
- The Japanese yen fell 1.1% to 157.26 per dollar
Cryptocurrencies
- Bitcoin rose 2.8% to $87,977.95
- Ether rose 4.4% to $2,952.52
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.14%
- Germany’s 10-year yield advanced three basis points to 2.88%
- Britain’s 10-year yield advanced three basis points to 4.51%
Commodities
- West Texas Intermediate crude fell 0.6% to $55.84 a barrel
- Spot gold fell 0.1% to $4,328.23 an ounce
This story was produced with the assistance of Bloomberg Automation.
© 2025 Bloomberg L.P.
