U.S. stock futures ticked higher on Monday as traders prepared for the Federal Reserve’s final policy decision of the year. Markets were also weighing the ramifications of Netflix’s proposed takeover of Warner Bros Discovery’s entertainment assets. In Asia, Japan reported a deeper-than-expected economic contraction, while China posted a strong rebound in exports despite a sharp drop in shipments to the United States.

U.S. futures climb as markets await the Fed

U.S. equity futures saw modest gains early Monday, extending last week’s upward momentum.

As of 02:40 ET:

• S&P 500 futures were up 0.2%
• Nasdaq 100 futures advanced 0.3%
• Dow futures added 0.1%

All three major U.S. indices finished last week in positive territory for a second consecutive week, with the S&P 500 and Nasdaq achieving four-session winning streaks. Optimism is being supported by expectations that the Fed will cut interest rates on Wednesday following Friday’s softer-than-expected core PCE reading. According to CME’s FedWatch tool, traders currently assign an 88% probability to a rate cut.

Netflix’s $72B bid for Warner Bros Discovery sets the stage for regulatory fights

Netflix (NASDAQ:NFLX) confirmed plans to acquire the TV, film, and streaming arms of Warner Bros Discovery (NASDAQ:WBD) in a blockbuster $72 billion deal. But the streaming giant is likely to face a lengthy gauntlet of regulatory reviews.

Anthony Saglimbene of Ameriprise Financial noted: “The largest factor of a deal of this size and complexity is the potential regulatory hurdles that these two companies are going to have to go through.”

He continued: “Both companies probably expect that they may need to sell assets to close the deal. And I think there’s more than enough room for them to do that.”

Hollywood unions and cinema groups have already voiced concerns that the merger could lead to layoffs, consolidate too much industry power, and reduce theatrical releases.

Adding to the drama, U.S. President Donald Trump said on Sunday: “I’ll be involved in that decision,”
and warned that the market influence of a merged company could be problematic: “That’s going to be for some economists to tell…. But it is a big market share. There’s no question it could be a problem.”

Japan’s GDP drops more sharply than anticipated

Updated figures released Monday show Japan’s economy contracted at an annualized 2.3% in the third quarter — worse than the initial estimate of -1.8%. Quarter-over-quarter GDP also declined by 0.6%, reflecting deeper economic strain.

The weakness sheds light on Prime Minister Sanae Takaichi’s recently announced stimulus plan, the largest new spending effort since the pandemic, which the government expects will boost GDP by about 1.4 percentage points annually over the next three years.

Despite this contraction, the Bank of Japan is still widely expected to raise interest rates at its Dec. 18–19 meeting, given that inflation has remained at or above 2% for more than three and a half years.

China’s trade surplus widens as exports rebound

Chinese exports staged an unexpected recovery in November, rising 5.9% year-on-year, while imports climbed 1.9%. This pushed China’s monthly trade surplus to $111.68 billion, well above economists’ projections.

The surge was driven largely by stronger exports to Europe, Australia, and Asian markets, offsetting a 29% plunge in shipments to the United States as companies adapt to the impact of President Trump’s tariffs.

Oil prices hover near recent highs

Crude prices moved slightly higher Monday, continuing to trade near two-week highs on expectations that a Fed rate cut could boost economic activity and energy demand.

• Brent crude: $63.85 (+0.2%)
• WTI: $60.20 (+0.2%)

Both benchmarks closed Friday at their highest levels since Nov. 18.

Meanwhile, Reuters reported that the G7 and European Union are considering replacing the Russian oil price cap with a full ban on maritime services for Russian crude — a move that could further tighten global supply.

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