OP Wire 12/10 (OP – Lite)

US Futures Hold Steady Amid Tech Pullback and Geopolitical Uncertainty

US stock index futures traded in tight ranges Tuesday, stabilizing after Monday’s sharp tech-driven selloff that pulled Wall Street off record highs. Investors remain focused on key inflation data due Wednesday, which could shape the Federal Reserve’s next rate move.

Market Snapshot at 6:30 ET (11:30 GMT):

• Dow Jones Futures: +5 points (+0.1%)
• S&P 500 Futures: +7 points (+0.2%)
• Nasdaq 100 Futures: +20 points (+0.1%)

Monday saw losses across the board, with the S&P 500 and Nasdaq Composite dropping 0.6%, while the Dow Jones Industrial Average fell 0.5%.

CPI Data in Focus
Investors are eagerly awaiting Wednesday’s Consumer Price Index (CPI) report for clearer inflation signals:

• Headline CPI: Expected to rise slightly to 2.7% (YoY).
• Core CPI: Forecasted to hold steady at 3.3%.

While inflation showed signs of easing earlier this year, recent stickiness and economic resilience have added uncertainty to the Fed’s long-term policy outlook. Markets still expect a 25-basis-point rate cut next week but remain cautious, with incoming President Trump’s anticipated inflationary policies adding to the mix.

Tech Sector Under Pressure
Technology stocks weighed on markets Monday:

• Nvidia (NVDA): Declined amid reports of an antitrust probe in China.
• Oracle (ORCL): Dropped over 8% premarket after missing lofty earnings expectations.
• MongoDB (MDB): Fell nearly 5% despite an upbeat annual forecast.
• C3.ai (AI): Rallied 10% after beating earnings estimates, driven by robust AI demand.

Eli Lilly (LLY) added 1% after announcing a $15 billion share buyback and a dividend hike. Upcoming earnings today include GameStop (GME) and Dave & Buster’s Entertainment (PLAY).

Oil Hands Back Gains
Crude prices dipped slightly Tuesday after Monday’s 1% rally, as traders assessed Middle East turmoil and China’s economic outlook.

• WTI Crude: -0.5% to $68.02/barrel.
• Brent Crude: -0.4% to $71.82/barrel.

The overthrow of Syria’s Bashar al-Assad initially spurred concerns about geopolitical instability. However, reports of rebels forming a new government eased fears.

OptionsPlayers Playbook:

• AAPL: Appears overextended. Be ready to enter a short position as it approaches toppy levels.
• CPI Reaction: Inflation data could spark volatility; keep an eye on tech and financials.
• Oil Opportunities: Watch for potential dips to reenter long positions if geopolitical tensions escalate.
• WMT March PUTS still looking to confirm reversal but yesterday was nice start.

Stay tuned for real-time updates and insights. Let’s Stack Your Gains! See you in chat with todays upgrades/downgrades, and news as it comes in.

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