Remember that sinking feeling when markets kick off a new month with a stumble? Yeah, Monday had that vibe—equities dipping, Bitcoin taking a nasty tumble, bonds selling off. But here we are on Tuesday, and things feel a bit different. Futures are pointing higher, crypto has found its footing, and there’s this quiet sense that maybe, just maybe, the dip was more noise than signal.
I’ve been watching these early December wobbles for years, and they often set the tone—or completely mislead everyone. This time, with the Fed heading into blackout ahead of next week’s decision and no big data drops today, markets seem content to catch their breath. Let’s unpack what’s happening and why it actually matters for anyone with skin in the game.
A Modest Rebound Takes Shape
By mid-morning, S&P 500 futures were up around 0.3%, Nasdaq 100 contracts a touch better at 0.4%. Nothing explosive, mind you—just enough to erase some of Monday’s gloom. The Magnificent Seven stocks led the premarket charge, with Meta and Amazon posting decent gains while Apple lagged a bit.
Bond yields stayed remarkably calm after yesterday’s jump, and the dollar held steady. Commodities showed their usual mixed personality: oil flat, base metals mostly higher, precious metals softer. And Bitcoin? After dropping more than 5% and triggering nearly a billion in liquidations, it clawed back above $87,000. That’s the kind of stabilization that calms nerves across risk assets.
In my experience, these quiet rebounds often signal that sellers have exhausted themselves—at least temporarily. No one’s pounding the table for massive upside, but the absence of fresh bad news feels almost bullish in itself.
Standout Premarket Movers
Some individual names really caught fire before the bell.
- MongoDB surged over 20% after crushing earnings expectations and lifting full-year guidance—a classic reminder of how strong fundamentals can cut through macro noise.
- Credo Technology jumped 18% on blowout quarterly numbers, dragging peers like Astera Labs higher too.
- Cloudflare gained on a fresh overweight rating from Barclays with an ambitious price target.
- Solaris Energy Infrastructure rose after Morgan Stanley highlighted growing demand for data center power solutions.
- Six Flags climbed following an upgrade to buy, proving theme parks still have fans on Wall Street.
These moves highlight a familiar pattern: when broader indices lack direction, sector-specific winners step into the spotlight. Tech and infrastructure names dominated the leaderboard, suggesting investors are still hunting growth stories even in uncertain times.
Bitcoin Finds a Floor—For Now
Crypto’s wild ride deserves its own section. Monday’s plunge wiped out huge leveraged positions and hammered anything tied to digital assets. Yet overnight, buyers stepped in decisively.
Perhaps the most interesting aspect is how quickly sentiment flipped. Retail traders who piled into leveraged MicroStrategy ETFs have suffered brutal drawdowns this year, but the spot price holding above key levels changes the narrative. It’s almost as if the market needed that washout to reset.
Dips continue to present attractive buying opportunities. The narrative behind that bull case remains an attractive one, with earnings growth solid, the underlying economy resilient.
– Senior research strategist at a major brokerage
I tend to agree. Crypto volatility feeds into broader risk appetite, and a steady Bitcoin often acts like training wheels for equity bulls.
The Fed Shadow Looms Large
With the Federal Reserve now in official blackout ahead of next week’s meeting, every comment from the past few weeks gets replayed on loop. Markets have priced in a rate cut with near certainty—odds sitting at 100% after softer labor and inflation prints.
But certainty can be dangerous. Any hint of hesitation could spark disappointment. On the flip side, confirmation of easing would likely fuel the “buy the dip” crowd even more.
Interestingly, implied volatility around FOMC announcements has fallen sharply since early 2023. Realized moves are hovering near zero. That tells me monetary policy is losing some of its punch—markets care more about earnings, trade policy, and growth momentum these days.
Global Markets Join the Bounce
Europe’s Stoxx 600 edged higher, led by banks and utilities. Standout winner? Bayer soared after encouraging signals in its long-running legal battle over weedkiller claims.
Asia closed mostly positive too. South Korea and Taiwan tech names powered gains, while Japan recouped some ground despite ongoing rate hike chatter from the central bank. Even Australian stocks nudged higher amid steady commodity demand.
- South Korean tech rally on reduced tariff fears
- Japanese banks extending gains on higher yield expectations
- Chinese benchmarks softer but off lows
- Indian shares under pressure from currency weakness
The common thread? Risk assets breathing a sigh of relief after Monday’s global selloff triggered by Japanese bond moves.
Commodities and Currencies: Mixed Signals
Oil traded sideways after recent volatility tied to geopolitical flare-ups. Base metals mostly climbed—aluminum leading the pack—while gold and silver pulled back from overbought levels.
Currencies showed little conviction. The yen weakened further against the dollar, pushing USD/JPY above 156. Euro held steady despite slightly warmer inflation data. Pound dipped modestly.
In fixed income, Treasury yields hovered near Monday’s close around 4.11% for the 10-year. Corporate issuance remained active, though Tuesday’s calendar looked lighter.
What Investors Are Watching Next
With today’s economic calendar empty, attention turns to later-week releases—jobs data, inflation updates, consumer sentiment. Those will shape final expectations heading into the Fed meeting.
Longer term, trade policy remains the elephant in the room. Tariffs continue to influence everything from currency moves to corporate guidance. Yet markets seem remarkably resilient so far.
For long-only investors, it’s very much wait-and-see until the Fed meeting, while keeping an eye on US jobs and inflation data.
– European fund manager
Sound advice. Patience often pays better than forcing trades in quiet periods.
Final Thoughts on the Rebound
Look, no one’s declaring victory yet. The gains are modest, conviction seems light, and plenty of risks lurk—from geopolitics to policy shifts. But after Monday’s shakeout, this stabilization feels healthy.
In my view, the underlying supports remain intact: solid earnings growth, resilient economy, gradually easier monetary conditions. Short sellers have already taken massive losses this year, and being aggressively bearish requires strong conviction in a sharp downturn.
Perhaps that’s why dips keep attracting buyers. Until something fundamentally breaks that narrative, these rebounds—however tentative—deserve respect.
As always, stay nimble. Markets rarely move in straight lines, especially in December. But right now, the path of least resistance feels slightly upward. We’ll see if the coming days confirm that bias or throw another curveball.
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