North American Morning Briefing: Stock Futures Mostly Lower, AI Volatility Persists

OPENING CALL

Stock futures were mostly retreating at the end of a volatile week for markets, hit by investor fears about lofty technology valuations and aggressive AI spending plans.

Early Friday the Nasdaq Composite led losses, with the Dow edging up, but the three main indexes were on pace for their worst week since April.

Investors' anxieties have dinged high-flying tech stocks and other assets seen as risky, such as bitcoin, which slipped below $83,000, down more than 30% from its October high.

"What stands out to me is the lack of any substantial shiftin narrative to cause such a big shift," said Tony Roth, chief investmentofficer at Wilmington Trust Investment Advisors.

"There's just not a lot of confidence in the market right now."

The Cboe Volatility Index touched its highest level since April this week topping 27 on Friday.

Stocks fell globally and benchmarks in China, Japan and South Korea closed more than 2% lower.

Stocks to Watch

Contineum Therapeutics said its MS drug didn't meet itstrial endpoints. The stock fell 12% afterhours.

Gap raised its sales outlook after its three mainbrands logged same-store sales growth. The stock rose nearly 4% premarket.

Geospace Technologies said oil volatility and less offshore exploration resulted in an 11% drop in sales.The stock declined 11%.

Intuit's results topped forecasts , boosted by AIdemand from mid-size businesses. Shares rose 3.5% premarket.

Ross Stores posted stronger-than-expected results and raisedits full-year guidance. Shares rose nearly 3% offhours.

Watch For:

University of Michigan Final Consumer Survey for November; Also due is a Bureau of Labor Statistics delayed report on inflation-adjusted earnings, and the S&P Global flash purchasing managers index. Fed's Barr, Williamsand Jefferson to speak.

Must Reads:

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-The Chip CEO Staring Down Nvidia and Talk of an AI Bubble

MARKET WRAPS

Forex:

The dollar continued to trade softer after the delayed September nonfarm payrolls report.

The supply-driven increase in unemployment eased labor-market tightness, boosting rate-cut expectations with Treasury yields and the dollar slightly lower, Danske Bank said.

However, this trend is unlikely to persist as the figures aren't a strong signal for the Fed to cut rates.

The euro held its ground against the dollar, showing little reaction after mixed French and German PMI surveys and eurozone manufacturing and services data.

Sterling fell against the euro and trimmed gains versus the dollar, following weaker-than-expected U.K. retail sales data.

The prospects of a bleak U.K. budget next Wednesday and Black Friday discounts indicate consumers reined in spending in October, Wealth Club said, adding that the BOE might have to ride to the rescue with rate cuts.

Bonds:

Treasury yields declined, extending Thursday's moves in the wake of mixed signals from the delayed September jobs report.

"The September jobs data was better than expected, potentially reinforcing fears that the Fed is hawkish," Global X said.

"We continue to believe that is overdone, and the Fed is concerned about the labor market amid slowing inflation."

SEB continued to expect the 10-year Treasury yield to fall to 3.90% in the first quarter of 2026, but acknowledged that, for it to reach our 3.90% target in Q1, markets need to regain confidence in rate cuts.

TD Securities expects 10-year Treasury yields to finish 2026 at 3.50% , notably below consensus and forward expectations.

"In some respects, 2026 is shaping up as a continuation of 2025-we look for Treasurys to once again outperform."

Correlations between global rates and U.S. are still quite strong, so falling U.S. yields will help to keep a lid on term borrowing rates elsewhere, it said.

Federated Hermes said it was too early to be confident about the Fed's path in 2026 and while some amount of easing is expected, money market funds were likely to cope with that well.

Energy:

Oil prices extended losses after Ukrainian President Volodymyr Zelensky agreed to work on a U.S.-drafted peace plan , easing geopolitical concerns.

Benchmarks were headed for a weekly loss of around 3% as prospects of an oversupplied market continued to weigh on sentiment.

Meanwhile, market watchers continue to closely monitor Russian flows as U.S. sanctions on Russia's Rosneft and Lukoil come into effect.

"Any peace deal could have broader implications for the oil market," ANZ said.

"If accompanied by the elimination of U.S. sanctions on Russian oil, it could release more oil onto the global market."

Metals:

Gold prices were on track for a weekly loss after the job report fed uncertainty over the Fed's next policy move.

"U.S. jobs growth topped expectations in September, but the employment rate continued to rise," ANZ said.

"This underscores the lingering fragility of the labor market."

Prices were also pressured by an easing geopolitical risk premium on news that Ukraine will work on a U.S.-drafted plan to end the war.

Base Metals

Base metal prices were on track for weekly losses as uncertainty over rate cuts weighed on sentiment.

   TODAY'S TOP HEADLINES 

Paramount, Comcast and Netflix Submit Bids for Warner Bros. Discovery

Paramount, Comcast and Netflix have submitted bids for Warner Bros. Discovery, owner of the storied Warner Bros. movie and television studio and HBO, according to people familiar with the matter.

The bids submitted are nonbinding, and additional rounds are expected, The Wall Street Journal previously reported. Warner Discovery has indicated it would like to have the process concluded by the end of the year.

Conglomerate CK Hutchison Weighs Dual Listing of Health & Beauty Retail Giant

Hong Kong-based conglomerate CK Hutchison is planning a dual listing of one of the world's largest health and beauty retailers, which could raise up to US$2.0 billion, people familiar with the process said.

The groundwork to list AS Watson Group in Hong Kong and the U.K. is already in process, with the initial public offerings targeted for the first half of next year, the people said.

China's Moonshot AI Raising Fresh Funds That Could Value It at About $4 Billion

China's Moonshot AI is nearing a dollar funding round that could boost its valuation to around $4 billion, according to people familiar with the matter.

The Beijing-based AI start-up is in talks with global investors, including investment firm IDG Capital, for the fundraise, which could total several hundred million dollars, some of the people said.

Citigroup Names New CFO and Reorganizes Personal-Banking Business

Citigroup named a new chief financial officer and shuffled other executive roles as part of a reorganization of its personal-banking business.

Gonzalo Luchetti, the bank's head of U.S. personal banking, will take over as CFO in March, Citigroup said Thursday. At that time, the current CFO, Mark Mason, will become an executive vice chair and senior executive adviser to Chief Executive Officer Jane Fraser.

Eurozone Business Activity Continues Growth Despite Manufacturing Hit

Business activity continued to grow in the eurozone in November, albeit at a slightly slower pace, hurt by lingering weakness in the manufacturing sector.

The eurozone's composite purchasing managers index-based on survey responses from around 5,000 manufacturers and service providers-fell to 52.4 from 52.5 in October, data firm S&P Global and Hamburg Commercial Bank said Friday.

U.S. Banks Shelve $20 Billion Bailout Plan for Argentina

A planned $20 billion bailout to Argentina from JPMorgan Chase, Bank of America and Citigroup has been shelved as bankers pivot instead to a smaller, short-term loan package to support the financially distressed government, people familiar with the matter said.

Treasury Secretary Scott Bessent and the Trump administration had been seeking to bolster Argentine President Javier Milei's pro-reform party when they announced a pair of financial lifelines this fall. The package included a $20 billion currency swap with the U.S. Treasury Department and plans for a separate $20 billion bank-led debt facility.

The Middle Class Is Buckling Under Almost Five Years of Persistent Inflation

America's middle class is weary.

After nearly five years of high prices, many middle-class earners thought life would be more affordable by now. Costs for goods and services are 25% above where they were in 2020. Even though the inflation rate is below its recent 2022 high, certain essentials like coffee, ground beef and car repairs are up markedly this year.

Air-Traffic Controllers With Perfect Shutdown Attendance to Get $10,000 Bonuses

The Transportation Department said it would pay $10,000 bonuses to air-traffic controllers who didn't miss work during the federal government shutdown.

Transportation Secretary Sean Duffy and Federal Aviation Administration Administrator Bryan Bedford said Thursday that the bonuses will be given to 776 air-traffic controllers and technicians who maintained perfect attendance during the shutdown.

Write to clare.kinloch@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators

0830 Oct New Housing Price Index

0830 Sep Retail trade

1000 Budget discussion with Finance Minister, François-Philippe Champagne in Calgary

G7 Interior and Security Ministers Meeting

Stocks to Watch:

BioSyent 3Q Dividend CAD 0.05

Dye & Durham Names Alan R. Hibben as Independent Chair; Names CEO George Tsivin to Board; Arnaud Ajdler, Sid Singh and Eric Shahinian Resign From Board

(MORE TO FOLLOW) Dow Jones Newswires

November 21, 2025 06:19 ET (11:19 GMT)