The Dow Jones Industrial Average (DJIA) traded higher in early Friday action, with investors balancing a rebound in technology shares against a sharp drop in Nike and the potential for options-related market noise on a major “triple witching” expiration day.
At around 9:31 a.m. ET, the Dow was up 87.38 points (0.21%) at 48,051.77. The S&P 500 rose 0.33% to 6,795.42, while the Nasdaq Composite added 0.51% to 23,111.63. [1]
Dow Jones at 9:31 a.m. ET: A firm open after a choppy week
Friday’s early advance followed a session in which markets had already found some relief. The Dow closed Thursday at 47,951.85, up 65.88 points (+0.14%), according to Yahoo Finance’s index data. [2]
By Friday morning, traders were again leaning into the idea that cooling inflation pressures could allow the Federal Reserve to keep easing—while still digesting cross-currents from global central banks and year-end positioning.
What’s moving the Dow today
1) Tech rebound extends after Micron sparks renewed AI optimism
A key support for sentiment has been a renewed bid for technology shares. Reuters pointed to Micron’s strong outlook as a catalyst that helped rebuild confidence in AI-linked trades after an earlier pullback, lifting names such as Nvidia, Tesla, and Amazon in premarket activity. [3]
Because the Dow is price-weighted, leadership in a handful of high-priced components can have an outsized impact on the index’s point move—even when the broader market story is more mixed.
2) Nike’s selloff is a direct drag on the Dow
Nike’s drop was a major counterweight for blue chips. Reuters reported the stock fell sharply after results, citing weak China sales and pressure on gross margins as key concerns. [4]
Other market coverage described Nike down in the low double digits early Friday, underscoring how a single Dow component can sway the index on a headline-heavy morning. [5]
3) “Triple witching” could amplify intraday moves (without guaranteeing a selloff)
Friday is also a triple witching session—when stock options, index options, and index futures expire together. Axios cited estimates that more than $7 trillion in contracts could roll off, a setup that often boosts volume and can create sharp, short-lived price swings as traders hedge or unwind positions. [6]
The important nuance: triple witching is notorious for higher trading volume, but it does not automatically mean a down day. It can simply mean noisier tape—especially into the close.
The macro backdrop: central banks are shaping the rate narrative
Bank of Japan hike adds a global rates wrinkle
Overnight, the Bank of Japan raised its policy rate to 0.75%, described by Reuters and AP as the highest level in roughly three decades. [7]
That shift matters for U.S. markets because it can ripple through global bond yields, currency moves (particularly USD/JPY), and cross-border flows—factors that can influence equity valuations at the margin.
Big central banks are signaling the easing cycle may be nearing an end
A broader Reuters analysis published Friday argued that major central banks are increasingly signaling a change in posture—less about aggressive cuts and more about caution. It highlighted:
- The Fed’s quarter-point cut on Dec. 10 (to a 3.5%–3.75% target range) and messaging that hinted at a pause. [8]
- A view among Fed policymakers that only one additional 25-basis-point cut may be appropriate in 2026, a relatively restrained path. [9]
- The ECB holding at 2% and avoiding strong forward guidance amid uncertainty. [10]
- The Bank of England’s narrow vote for a cut to 3.75%, with dissenters warning about lingering inflation pressures. [11]
For U.S. equities, the takeaway is clear: markets may still want rate cuts, but policymakers are trying to keep expectations anchored.
Fed watch: Goolsbee welcomes the inflation “good month,” but warns against overreacting
Chicago Fed President Austan Goolsbee said in a Fox Business interview that there’s “a lot to like” in the latest CPI report, and that if the trend holds it could “open the door” to more rate cuts next year. He also said he believes the longer-run “settling point” for rates is below current levels—assuming inflation continues moving toward 2%. [12]
At the same time, Reuters noted the CPI release was delayed by the government shutdown, and economists urged caution about drawing sweeping conclusions from one month of data. [13]
That combination—encouraging inflation prints but messy data quality—helps explain why markets can rally on “cooler inflation” headlines while still seeing day-to-day volatility.
Corporate headlines in focus: Oracle–TikTok structure and other movers
Beyond Nike, traders were tracking other large-cap stories with potential index-level implications:
- Oracle: Barron’s reported Oracle gained after news tied to a TikTok U.S. joint venture structure involving ByteDance and other partners. [14]
- Broader “risk-on” signals: Pre-market coverage highlighted movements in Treasury yields and crypto (often used as a real-time sentiment gauge), with bitcoin trading near the high-$80,000 range in early reports. [15]
What to watch later today: key U.S. data still ahead
Friday’s calendar still has potential catalysts for rates and stocks. Investing.com flagged Core PCE (the Fed’s preferred inflation gauge) and Existing Home Sales among the releases investors were watching on Dec. 19. [16]
A hotter-than-expected Core PCE print could revive “higher for longer” fears; a softer print could reinforce the cut narrative—though traders may remain wary given recent data-collection disruptions.
Bottom line for the Dow Jones today
As of about 9:31 a.m. ET, the Dow Jones Industrial Average was higher, supported by a tech-led rebound even as Nike’s decline weighed on the index. [17]
The rest of the session may hinge on two forces that often dominate late December trading:
- Rates expectations (what inflation data implies the Fed can do next), and
- Positioning/expiration effects (triple witching flows that can amplify moves, especially into the close). [18]
References
1. www.reuters.com, 2. finance.yahoo.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.barrons.com, 6. www.axios.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.barrons.com, 15. www.barrons.com, 16. uk.investing.com, 17. www.reuters.com, 18. www.reuters.com
