As investors prepare for key economic data this week amid growing expectations of a U.S. rate cut in December, global equities advanced, led by tech stocks. Markets are bracing for multiple potential catalysts, including upcoming U.S. retail sales and producer price data.

At the time of writing, Dow futures rose 0.15%, S&P 500 futures gained 0.33%, and Nasdaq futures climbed 0.61%.

European markets rebounded on Monday, catching up with Wall Street’s late rally on Friday after days of volatility driven by concerns over tech valuations. The pan-European STOXX 600 index, which fell 2.2% last week, rose 0.5%. Defense stocks declined, but gains in tech, healthcare, and banking sectors offset losses.

The S&P 500 is poised to extend Friday’s rebound, with futures up 0.3%. Nasdaq 100 futures rose 0.6%. Alphabet led pre-market gains among the "Magnificent Seven," climbing over 2%.

Earlier in Asia, Alibaba surged 4.7% following strong demand for its new AI app. The MSCI Asia ex-Japan index rose 1%.

Optimism was further buoyed by reports that U.S. officials are in early talks with Nvidia to allow sales of its H200 chips to China, easing concerns over AI sector valuations that had fueled recent volatility.

The dollar and Treasuries were little changed. Bitcoin retreated after a weekend rebound, signaling lingering caution. The cryptocurrency is on track for its worst month since 2022 amid a broader digital asset slump. Oil prices dipped slightly as traders weighed prospects of a Ukraine-Russia peace deal.

**Williams Bolsters Rate-Cut Bets** The latest market rally followed dovish remarks from Fed official John Williams, who said rates "could decline in the near term," reinforcing expectations of a December cut. Fed funds futures now price in a 60% chance of a 25-basis-point reduction next month.

Goldman Sachs Chief Economist Jan Hatzius expects the Fed to cut rates in December, followed by two more in March and June 2026, bringing the federal funds rate to 3%-3.25%. He noted risks of additional cuts next year if core inflation remains subdued and labor market weakness persists.

**Fed Enters Blackout Period** The Fed’s pre-FOMC blackout period, restricting public comments from policymakers, began Saturday. With Williams’ dovish tilt, markets now assign a 60% probability to a December cut. Among voting members, four favor holding rates steady, four lean toward cuts, and two remain uncommitted.

As one of the Fed’s "Big Three"—alongside Chair Powell and Vice Chair Jefferson—Williams’ stance carries significant weight. His support for easing suggests Powell and Jefferson may also vote for a cut, potentially tilting the committee 6-4 in favor.

**Key Data Ahead** This week’s retail sales data, due Tuesday, will gauge consumer resilience amid high prices and job concerns. Producer prices and durable goods orders are also on tap.

Interactive Investor’s Richard Hunter noted, "Softening economic indicators heighten focus on retail sales, though the data is somewhat backward-looking." Generali Investments’ Paolo Zanghieri sees only a 50% chance of a December cut, expecting slower easing in 2025.

**Treasury Settlement Strains Liquidity** The S&P 500’s 3.7% November drop may worsen as $150 billion in Treasury settlements drain liquidity. The index has fallen in seven of nine settlement days since October 30.

**Morgan Stanley Sees Pullback Nearing End** Morgan Stanley strategist Mike Wilson reiterated bullish 2025 targets, calling recent weakness a buying opportunity. The bank forecasts the S&P 500 at 7,800 in a year—18% above current levels—favoring consumer discretionary, healthcare, and industrials.

**Notable Movers** Pre-market, Tesla and Alphabet rose over 2%, while Amazon, Nvidia, and Meta gained 0.7%-1%. Merck climbed 2.2% after a Wells Fargo upgrade. Biogen surged 6% as Novo Nordisk’s Alzheimer’s trial disappointed, sending its shares down 12%. Hesai jumped 7.6% on its new lidar chip, and Bilibili rallied 5% on strong game launches.