A gauge of Asian equities fluctuated in early trading after capping its best weekly advance in about two months. Oil jumped after OPEC+ confirmed it will stick with plans to pause production hikes during the first quarter, while silver hit a fresh record. S&P 500 futures edged lower after the underlying gauge rose 0.5% on Friday amid a technical outage at the Chicago Mercantile Exchange that disrupted premarket activity.
The week ahead is set to offer a crucial snapshot of US economic momentum as policymakers weigh the trajectory of interest rates heading into 2026. With inflation and consumer demand under scrutiny, data is likely to shape expectations for whether the Fed continues its rate-cutting cycle. Investors are also bracing for potential shifts in central bank leadership with White House economic adviser Kevin Hassett signaling markets were ready for the announcement of a new Fed chair.
“For now, the data supports the soft landing, and that contributed to the continued equity rally ahead of Thanksgiving,” wrote Tom Essaye of the Sevens Report. “However, there remain a lot of economic unknowns right now and there are simmering risks that the economy is not as strong as investors believe given the lack of government data in recent months.”
The week begins with fresh data on US consumer spending, including Cyber Monday sales, and the release of more delayed economic indicators. Fed officials will review an outdated reading of their preferred inflation gauge ahead of the Dec. 9–10 policy meeting, where debate is expected to center on labor market conditions and the case for a third consecutive rate cut.
While the Fed enters its pre-meeting blackout period, Chair Jerome Powell and Governor Michelle Bowman are scheduled to speak, though they are barred from commenting on the economic outlook or policy.Other economic data in the coming week include ADP private employment figures for November, as well as Institute for Supply Management surveys of manufacturers and service providers. The Fed is also scheduled to release September industrial production figures.Hassett, speaking on CBS’ Face the Nation on Sunday, declined to address whether he considers himself the front-runner to replace Fed Chair Jerome Powell, adding a positive market response to indications that US President Donald Trump could pick the next chair before the end of the year.
Markets are continuing to bet that the central bank will cut its benchmark this month. Swaps data shows traders have priced-in almost a full quarter-point reduction since New York Fed President John Williams said he saw room to lower rates again in the near-term amid labor-market softness.
In Asia, data published Sunday showed that China’s factory activity improved but remained in contraction in November, extending its streak of declines to a record as the country’s economic slowdown deepens.
The yen rose against the dollar as investors awaited remarks from Bank of Japan Governor Kazuo Ueda on Monday, with markets alert to any signals on the likelihood of a December rate hike. The yield on Japan’s two-year bonds rose to 1% for the first time since 2008.
Elsewhere, airlines across the world raced to keep their fleets operating after a major software glitch forced an urgent update for Airbus SE’s most widely flown aircraft, with the rapid response avoiding a major meltdown during a crucial holiday-travel season.