U.S. equity futures slipped on Monday as investors reassessed market stability following Friday’s unexpected exchange outage, while shifting Federal Reserve expectations and mixed holiday retail signals added to the cautious mood. The combination of technical disruptions, uneven sector performance, and uncertainty around monetary policy has introduced fresh questions about the market’s ability to sustain its recent rally into year-end.

Futures Retreat After Strong Post-Holiday Session

After a resilient performance in Friday’s abbreviated post-Thanksgiving trading, momentum eased early Monday. S&P 500 futures fell nearly 0.7%, while Dow Jones Industrial Average futures slipped 0.4%, signaling a softer open as investors sought clarity on both liquidity conditions and policy direction.

Friday’s gains had represented a continuation of November’s recovery trend, with the S&P 500 climbing 0.5%, the Dow rising 0.6%, and the Nasdaq 0.7%. Yet the tone has shifted as investors weigh whether last week’s strength can withstand renewed pockets of volatility.

CME Outage Raises Concerns About Market Infrastructure

The multi-hour halt in trading for the Dow, S&P 500, and Nasdaq futures rattled traders already dealing with reduced liquidity during the holiday period. CME Group later traced the disruption to a cooling-system failure at a CyrusOne data center, prompting calls for a deeper review of the reliability and single points of failure within the exchange ecosystem.

For markets increasingly reliant on automated systems and high-frequency execution, the incident served as a reminder that operational risks can quickly ripple across asset classes. The outage also limited month-end positioning, elevating uncertainty as trading resumes at full capacity this week.

Tech Sector Shows Signs of Fragmentation

While artificial intelligence remains a dominant investment theme, performance across major tech names diverged sharply in November. Nvidia fell 1.8% on Friday and ended the month with a double-digit decline, reflecting investor sensitivity to stretched valuations. Oracle posted an even steeper monthly drop of 23%, and Palantir shed 16% as investors rotated out of high-multiple names.

At the same time, Alphabet surged nearly 14% in November, supported by growing enthusiasm for its new “Gemini” AI model. The divergence highlights how selective the market has become, emphasizing fundamental momentum and product execution rather than broad thematic exposure.

Fed Policy Outlook Keeps Investors Divided

Markets remain split on whether the Federal Reserve will be able to deliver additional rate cuts. Inflation has shown a slight upward drift, while labor-market indicators have softened enough to fuel debate inside the Fed. Minutes from the October meeting revealed deep divisions among policymakers, adding to volatility as traders recalibrate expectations ahead of December’s decision.

For now, futures are pricing in a high probability of at least one cut by year-end, though the path beyond that remains unclear as the inflation-growth trade-off becomes more delicate.

Retail Sector Prepares for Holiday Surge

Despite macro uncertainties, consumer spending remains a critical support for equity markets. Early data suggests Black Friday and Cyber Monday sales are on track to exceed forecasts. Retail stocks were mixed: Macy’s dipped 0.3%, Kohl’s gained 1.4%, Abercrombie & Fitch added 2.9%, and American Eagle rose 0.7%. The sector’s ability to sustain momentum through December will be closely watched as investors gauge the durability of U.S. consumption.

Bitcoin also contributed to risk-off sentiment, tumbling 5.3% to $86,225 amid renewed digital-asset volatility.