Global markets edged higher on Friday as traders weighed upbeat rate-cut expectations against signs of fatigue in some AI-linked utility stocks. A brief technical outage at the Chicago Mercantile Exchange added uncertainty to an already thin post-holiday session, but it did not derail the broader risk appetite.
US equities extended their winning streak. The S&P 500 gained about 0.4% in late morning New York trade, while the NASDAQ 100 added roughly 0.5%. The Dow Jones Industrial Average advanced around 0.6%, helped by strength in large industrial and financial names. Global benchmarks also moved higher, with the Stoxx Europe 600 up 0.3% and the MSCI World Index rising 0.4%.
Traders continued to price in a Fed interest-rate cut at the upcoming meeting. Swaps markets now reflect almost a full quarter-point reduction since last week, after recent comments from Fed officials and soft labor signals reinforced the case for easier policy. Strategists noted that even a modest cut would send a strong signal that the Fed stands ready to respond to slowing growth.
A technical outage at CME’s data center briefly disrupted futures and options trading early in the US session. The exchange restored most activity by mid-morning, and volumes stayed light as many investors treated the post-Thanksgiving day as a partial holiday. Analysts said the thin liquidity made it difficult to draw firm conclusions from intraday price swings.
US utility stocks, which had surged to records on the back of AI-driven data center demand, showed renewed weakness. The S&P 500 Utilities Index is on track for its worst month since August, even after hitting an all-time high in October. Investors now question whether power producers can scale generation as fast as earlier narratives suggested.
Constellation Energy shares have dropped about 11% from their October peak after an earnings call that offered few details on new capacity tied to data centers. Vistra declined roughly 16% since mid-October as the pace of AI-related contract announcements slowed. NRG also tempered expectations by holding guidance where some investors had hoped for upgrades.
Analysts say AI bubble concerns now influence the sector. If electricity demand from AI workloads grows more slowly than projected, utilities that expanded valuations on aggressive assumptions could look expensive. Comments from DeepSeek about more energy-efficient AI models earlier this year already triggered a sharp sell-off in some power stocks, highlighting the risk that technology shifts may reduce expected load growth.
Even after the pullback, several names still show large year-to-date gains. Constellation, NRG, and GE Vernova remain well ahead of the broader market, which supports the view that recent moves may also reflect profit-taking after a strong run.
In currency markets, the Bloomberg Dollar Spot Index slipped 0.2%, extending its recent retreat. The euro traded near $1.1602 with little change, and the British pound held around $1.3249. The Japanese yen firmed about 0.2% to 156.03 per dollar as traders adjusted positions around US yields.
Bond markets showed only small shifts. The US 10-year Treasury yield rose three basis points to 4.02%. Germany’s 10-year yield edged up to 2.69%, while the UK 10-year gilt yield held near 4.45%.
Commodities posted moderate gains. West Texas Intermediate crude climbed 1.1% to about $59.27 a barrel as traders watched the upcoming OPEC+ meeting and geopolitical headlines. Spot gold advanced 1.1% to approximately $4,204 an ounce after futures trading resumed following the CME outage.
In digital assets, Bitcoin rose 0.8% to around $92,172, while Ether added 0.9% to trade near $3,058. Crypto markets mirrored the broader tone of cautious optimism, with traders balancing higher rate-cut odds against lingering concerns about liquidity and volatility into year-end.
Also Read: US Stock Market Today: S&P 500 Gains 0.9% as Soft Labor Data Fuels Fed Easing Outlook
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