U.S. Jobs Data and CEO Shakeups: What’s Moving the Markets This Week?

As the final trading month of the year begins, several developments are influencing market sentiment. U.S. stock futures are slightly lower, with key economic data and events scheduled this week keeping investors on edge. From corporate leadership changes to geopolitical tensions and trade threats, the landscape for financial markets is shifting. Here's a look at the major factors shaping markets this week.

1. Futures Show Slight Decline as December Opens

U.S. stock futures indicated a modest dip as Wall Street kicked off December. At 05:19 AM EST on Monday, Dow futures were down 42 points (-0.09%), S&P 500 futures lost 11.50 points (-0.19%), and Nasdaq 100 futures were off by 41 points (-0.20%). Despite this minor pullback, U.S. stocks had a strong finish to November, which saw both the Dow and the S&P 500 post their best monthly gains of 2024.

The gains were driven by investor optimism following the U.S. presidential election, and both indices hit new all-time highs during the holiday-shortened trading session. Although the market starts December lower, the broader trend has been positive, fueled by strong economic growth throughout the year.

2. U.S. Jobs Report and Fed Speeches in Focus

A key piece of economic data this week will be Friday’s highly anticipated U.S. jobs report, which is likely to provide fresh insights into the health of the economy ahead of the Federal Reserve’s December meeting. While strong economic growth has been a major driver of the stock rally this year, concerns persist that inflation could rise if the Fed lowers interest rates too quickly.

If the jobs report mirrors the strong numbers from September, it could throw a wrench in expectations for future rate cuts, potentially cooling the stock rally. Additionally, Monday’s calendar includes reports on U.S. manufacturing activity and construction spending, as well as speeches from Fed officials, including Governor Christopher Waller and New York Fed President John Williams. These events could provide clues on the central bank’s future actions.

3. Canada Tightens Border Controls Amid Tariff Threats

Tensions are rising on the trade front as Canadian Prime Minister Justin Trudeau meets with President-elect Donald Trump. In a bid to avoid a trade war, Canada has vowed to tighten its border controls after Trump threatened to impose tariffs on Canadian imports unless Ottawa takes action to curb illegal crossings and the flow of drugs into the U.S.

Given that Canada exports 75% of its goods and services to the U.S., any tariffs could have a significant economic impact. Trump's promise of sharp tariff hikes on goods from Canada, Mexico, and China could disrupt both the Canadian and global economies, with U.S. consumers potentially facing higher prices on many imported goods.

4. Stellantis CEO Resigns, Shares Take a Hit

Stellantis NV, the European-American automaker known for brands like Jeep, is dealing with an abrupt leadership change. CEO Carlos Tavares resigned on Sunday, citing "different views" with the company's board of directors. The resignation sent shares of Stellantis down 8% on Monday.

Stellantis has faced challenges in 2024, including slumping sales in North America, which led to a profit warning in September. The company’s stock has dropped by around 40% this year, a stark contrast to its U.S. competitors. Ford has seen a 7% drop in its shares, while General Motors has enjoyed a remarkable 55% gain. With Tavares’s departure, Stellantis faces uncertainty as it works to recover and regain investor confidence.

5. Oil Prices Rise Amid Geopolitical Tensions and Strong Chinese Demand

Oil prices saw a boost on Monday, with WTI crude futures climbing by 1% to $68.68 per barrel, while Brent crude rose by 0.7% to $72.41. The rise was driven by a combination of strong factory activity in China, the world's second-largest oil consumer, and ongoing geopolitical tensions in the Middle East. Despite a ceasefire agreement between Israel and Lebanon, Israel’s military actions in the region continue to stoke fears of supply disruptions.

Oil prices had suffered a weekly decline of more than 3% last week as concerns about supply risks from the Israel-Hezbollah conflict eased. However, the outlook remains uncertain as the OPEC+ meeting, which was postponed to December 5, may result in further delays to planned output increases. Oil market watchers will be keenly watching the outcome of this meeting, as well as forecasts for 2025, which suggest a potential supply surplus.