Group 1 - U.S. stock futures experienced an increase, with S&P 500 futures up 0.2%, Dow Jones Industrial Average futures rising 0.1%, and Nasdaq futures pointing 0.3% higher following the restoration of trading after a significant outage [1][2] - The outage was caused by a cooling issue at the CME Group data center, which affected trading for several hours [1] - CME Group's EBS foreign exchange platform and BrokerTec U.S. Actives and BrokerTec EU markets reopened earlier in the morning, with futures and options markets set to reopen at 8:30 a.m. Eastern time [2]

Core Viewpoint - The US stock markets are operating on shortened hours for Black Friday, but trading in futures and options is halted due to a cooling issue at a CME Group data center [1][2]. Market Operations - Regular stock trading is proceeding with the NYSE, Nasdaq, and over-the-counter markets opening at 9:30 a.m. ET and closing at 1 p.m. ET, while eligible options will remain open until 1:15 p.m. ET and bond markets opened at 8 a.m. ET, closing at 2 p.m. ET [3][11]. - CME Group confirmed that only BrokerTec EU markets are open, while all other CME markets remain halted [2][10]. Market Performance - Prior to the CME outage, futures were subdued with Dow Jones futures rising 0.11%, S&P 500 futures adding 0.1%, Nasdaq 100 futures gaining 0.18%, and Russell 2000 futures up 0.13% [1][11]. - In early trading, SPY rose 0.28%, QQQ gained 0.43%, and DIA added 0.24% [1][11]. Company-Specific Updates - Tesla (TSLA) shares increased by 0.4% pre-market as the company began offering free Full Self-Driving rides in several European countries [6]. - Security Matters (SMX) shares surged 71% pre-market after showcasing its molecular identity technology at a conference [6]. - Tilray Brands (TLRY) shares dropped nearly 14% pre-market following a 1-for-10 reverse stock split [7]. Global Market Context - Foreign stock exchanges, including those in Shanghai, Hong Kong, Tokyo, and London, are open, along with banks and postal services in the US [8][10]. Historical Trends - The S&P 500 has historically risen during the period from the Wednesday before Thanksgiving through one week after Black Friday, gaining 1.5% last year, 0.8% in 2023, and 1.1% in 2022, while it fell 3.5% in 2021 [9][12].

Group 1 - CME Group announced the reopening of futures and options trading after a data center issue caused a trading halt across asset classes [1][2] - The trading markets are set to open at 0830 ET following the restoration of fixed-income and foreign-exchange platforms [2] - The trading halt was attributed to a cooling problem at a data center operated by CyrusOne, which is working to resolve the issue [2]

Exchange operator CME Group said on Friday that its Globex futures and options markets pre-opened at 07:00 Central Time (1300 GMT) and open at 07:30 CT, after an earlier halt caused by a cooling issue at its data centres. ...

Core Viewpoint - CME Group experienced a platform-wide trading halt due to a cooling failure at a third-party data center, impacting key commodity prices like gold, silver, and copper, which entered a "stagnation" phase for over 8 hours [3][4]. Group 1: Incident Details - The trading halt was triggered by a cooling issue at CyrusOne data center, preventing global traders from operating through the Globex system, leading to significant risks for institutions relying on this platform for hedging and speculation [4]. - The immediate consequence of the outage was a sudden disappearance of liquidity in the futures market, with OTC spreads widening significantly [4]. Group 2: Market Reactions - Tim Waterer, Chief Market Analyst at KCM Trade, noted that a significant portion of the gold price increase was due to investors positioning for an anticipated low interest rate environment, with an 85% probability of a Fed rate cut in December according to CME's FedWatch tool [5]. - The system failure not only affected commodities but also impacted forex, U.S. Treasury, and stock index futures, with the EBS forex platform also pausing trading [6]. Group 3: Economic Context - The macroeconomic environment is supporting precious metal prices, as the dollar is experiencing its worst week since late July, enhancing the appeal of dollar-denominated assets like gold [6]. - Market participants are limited to off-market operations until trading resumes, creating a disjointed state that may increase price volatility risks [6].

Core Insights - The stock market is experiencing a tech outage that halted trading on Black Friday, but major indexes were on track for their best week since June [1][2][4] Market Performance - Futures for the Nasdaq, S&P 500, and Dow Jones were up 0.2%, 0.1%, and 0.1% respectively before the trading halt [2][8] - The Nasdaq is up 4.2% for the week, while the S&P 500 and Dow are up approximately 3.2% and 2.6% respectively [4] Commodity and Currency Updates - WTI crude futures increased by 0.7% to $59.10 per barrel, and gold futures rose by 0.5% to $4,220 per ounce [2] - Bitcoin remained stable at around $91,300, and the U.S. dollar index was up 0.2% at 99.80 [3] Corporate News - Robinhood Markets saw a nearly 11% increase in shares due to expansion in prediction markets, with a further 1.5% rise in premarket trading [5] - Alphabet's shares rose 1.5% after the announcement of its advanced Gemini 3 AI model, with a market capitalization of $3.87 trillion [6]

Core Insights - U.S. Treasury yields and the U.S. dollar are rising despite trading disruptions caused by a technical outage at the Chicago Mercantile Exchange (CME) [1][2] - The CME outage is affecting futures trading, while the dollar is performing well against other G-10 currencies, with the DXY dollar index increasing by 0.2% to 99.772 [2] Treasury Yields - Treasury yields have increased by up to 3 basis points across various maturities [2] - The spreads between bid and ask levels remain wide, indicating thin trading conditions due to the CME outage and the recent U.S. Thanksgiving holiday [2]

Core Viewpoint - The CME's technical failure has disrupted trading, leading to a halt in gold prices at $4,221.30 per ounce before the US market opened, which may result in price volatility once trading resumes [1] Group 1: Market Impact - The technical failure at CME has exacerbated the already low trading volume following the Thanksgiving holiday in the US [1] - Market observers suggest that once trading resumes, there could be significant price fluctuations in gold [1] Group 2: Price Movement - Gold prices are expected to record a weekly increase of 3.5%, driven by renewed expectations of a Federal Reserve rate cut in December [1] - The anticipated rate cut is seen as beneficial for non-yielding assets like gold [1]

Core Viewpoint - The Chicago Mercantile Exchange (CME) experienced a significant system outage that halted trading across various markets, affecting contracts worth trillions of dollars, highlighting its critical role in global financial infrastructure [1][2]. Group 1: Incident Overview - The CME's trading of futures and options was completely suspended due to a data center failure, impacting a wide range of assets including S&P 500 futures, foreign exchange, U.S. Treasury bonds, and various commodities [1]. - The outage occurred on a day when trading was already expected to be light due to the Thanksgiving holiday, exacerbating the situation for traders who rely on CME for liquidity [4]. Group 2: Market Reactions - Traders expressed frustration over the inability to execute trades, with some seeking alternative channels to maintain operations, although liquidity was significantly lower than that provided by CME [1][4]. - The incident has raised concerns about the reliability of exchanges and data center operators, as similar outages have occurred at other exchanges in recent years, indicating a growing risk in the global pricing system [2]. Group 3: Impact on Trading Activities - The outage coincided with the monthly expiration of gasoline and diesel futures, which could involve physical delivery, complicating the situation for oil brokers [3]. - Cash bond trading was intermittently affected, leading to reduced hedging capabilities for traders, although some alternative hedging tools saw increased activity in the London market [4]. Group 4: Broader Implications - The freezing of trades worth trillions of dollars during a critical year-end period poses significant risks for mutual funds and other market participants [4]. - Investors, already cautious due to low liquidity, opted to stay on the sidelines amid the system disruption, further highlighting the vulnerability of trading operations during such outages [4].

Core Insights - U.S. stock futures trading was halted due to a data-center cooling issue, impacting the market just before the Black Friday opening [1] - CME Group has begun to restore trading in some markets, specifically in fixed-income markets like BrokerTec US Actives and BrokerTec EU [1][2] - Other markets, including futures contracts for gold, silver, oil, and stock futures, remain halted [2]