US equity markets kicked off a holiday-shortened trading week on a positive note this Monday, registering modest advances across major indices. The gains came amidst relatively light trading volumes and significant movements in the commodities sector.
Indices Edge Higher, Commodities Steal the Show
In early trade, the benchmark S&P 500 index rose 0.4%, trading just below the all-time peak it achieved earlier in December. The Dow Jones Industrial Average climbed 170 points, also a 0.4% gain, while the technology-heavy Nasdaq Composite mirrored the increase with a 0.4% rise. Market sentiment found support from a robust rally in commodities, where both gold and silver prices surged to unprecedented record levels.
Oil prices also witnessed an upward jump. This movement followed an announcement from US authorities that the Coast Guard was pursuing another sanctioned oil tanker in the Caribbean region. Prior to the market opening, futures trading had indicated a positive trend, with S&P 500 futures up 0.4% and Nasdaq futures gaining 0.6%.
Corporate Moves and the Economic Calendar
Shares of ride-hailing giants Uber and Lyft each gained approximately 1.4%. The surge came after both companies separately revealed plans to launch robotaxi services in London by next year. These initiatives will be pursued through partnerships with the Chinese technology firm Baidu, with testing scheduled to commence in the first half of 2026.
With the Christmas holiday approaching, corporate news flow is expected to remain quiet. Consequently, investor attention is shifting towards key economic data releases scheduled for this week. On Tuesday, the US government will publish the first estimate of third-quarter Gross Domestic Product (GDP). The Conference Board will also release its crucial December consumer confidence survey on the same day.
Further data on the health of the labour market will arrive on Wednesday when the Labor Department publishes its weekly report on jobless benefit applications. Economic sentiment has shown signs of softening throughout the year, pressured by persistent inflation, a cooling job market, and weaker retail sales figures.
Global Market Performance and Central Bank Actions
European markets presented a mixed picture at midday. Germany's DAX was largely flat, while France's CAC 40 and Britain's FTSE 100 both declined by 0.4%. In contrast, Asian markets closed firmly in the green. Japan's Nikkei 225 led the rally, jumping 1.8% to 50,402.39, driven by strong performances in semiconductor stocks like Tokyo Electron and Advantest.
The advance in Japanese financial stocks and exporters followed the Bank of Japan's decision on Friday to raise its key policy rate to its highest level in three decades. Interestingly, the yen weakened post-decision, prompting warnings from officials about excessive volatility. Elsewhere in Asia, Hong Kong's Hang Seng and China's Shanghai Composite posted gains, while South Korea's Kospi climbed an impressive 2.1%.
In the commodities space, the rally was pronounced. Gold gained 1.3% to $4,443.10 per ounce, and silver surged over 2% to a record $68.90 per ounce. US benchmark crude oil rose by $1.17 to $57.69 per barrel, influenced by geopolitical tensions involving tanker seizures.
