Good morning. Last week ended on a positive note with the S&P 500 and Russell 2000 advancing almost 1% on Friday with Tech leading the way. The sector rallied in the back half of the week after being under pressure earlier. Friday also saw the big Triple Witching push volumes to big but not-quite-record levels. S&P futures are trading higher as we hit the last seven trading days of 2025. Fed governor Stephen Miran spoke on Bloomberg this morning, reiterating his dovish views on monetary policy. Treasury yields were largely unchanged on his comments and are up about 2-3bp across the curve, while the US Dollar Index is sliding, taking a step lower after Japan’s Finance Minister said they have a “free hand” to take bold action on Yen weakness.

There’s some M&A news coming in under the wire, with PE firms Permira and Warburg Pincus announcing a deal to acquire software provider Clearwater Analytics for ~$8 billion. Trian and General Catalyst are taking asset manager Janus Henderson private in a $7.4B deal. Cintas is making a new proposal for UniFirst and CACI is acquiring ARKA Group for $2.6B. Meanwhile, more twists and turns in the Warner Bros. saga. Paramount amended its offer which now includes a personal, irrevocable personal guarantee from Larry Ellison.

While equities and treasuries are moving modestly, the real action this morning is over in commodities, with sharp gains across the complex. Brent crude is up after the US intercepted more Venezuelan tankers. The geopolitical tensions are also helping to boost precious metals. Ag markets are also higher and crypto is gaining as well. Bitcoin and Ethereum are testing resistance at their respective 20d ma (~$89,750 / $3,060).