Bonds & Stocks
US stock futures erased their advance as traders reined in big bets ahead of a dated reading of the Fed’s preferred inflation gauge. Treasuries are on track for their worst week since June.S&P 500 contracts trimmed gains of as much as 0.3% after the index closed within a whisker of a fresh record. Treasuries extended losses, with the 10-year yield rising one basis point to 4.11%. An interest rate cut next week is largely priced in, with bets pointing to further easing into 2026. September’s personal consumption expenditures price index and a core measure that excludes food and energy are due later on Friday.
Economy
Treasuries are on track for their worst week in six months as investors brace for a slate of US inflation and sentiment data. US 10-year yields edged up to 4.12%, taking them 10 basis points higher on the week, the most since June. Yields have failed to sustain a late-November break below 4% given some Federal Reserve policymakers remain cautious on further easing due to inflationary fears. The 30-year yield climbed to 4.78%, the highest since September.
World
The Canadian economy added 53,600 jobs in November, making it the third consecutive month of surprisingly strong job gains as US tariffs otherwise slow down activity. Economists surveyed by Bloomberg were expecting employment to fall by 2,500 and for the unemployment rate to tick up to 7%. The employment increase last month was driven by part-time work, as well as the private sector. Health care and social assistance led the job gains, with employment rising by 46,000 in that sector.