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By Staff Reporters

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Recession worries are firing up as the yield curve (a graph of US Treasury bond yields over time) takes on an increasingly negative slope, the likes of which we haven’t seen in 40 years. Near the last days of November, the yield on the 10-year T-bond dropped almost 0.8% below the two-year bond yield. Typically these metrics have the opposite relationship, and an aggressive inversion like this has been a pretty accurate indicator of an upcoming recession. Last time it was this bad in the ’80s, unemployment was worse than during the 2008 financial crisis.

And, a fw months after Microsoft announced plans to acquire the video game maker Activision Blizzard, the tech giant said it would remain neutral if Activision workers sought to unionize once the deal went through. Now, a major union is testing Microsoft’s appetite for organizing at a company it already owns.

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U.S. also stocks fell hard to start off the new week amid some economic data, even as China took further measures to ease COVID restrictions. The global markets digested a host of November services sector reports which suggested that activity around the globe is mostly slowing, but U.S. output surprisingly accelerated. The data seemed to foster uncertainty regarding how aggressive the Fed may be next week with its monetary policy decision.

In other economic news, factory orders grew at a faster pace than expected. Treasury yields gained ground, the U.S. dollar reversed to the upside, and gold prices saw noticeable pressure.

Crude oil prices dropped after OPEC+ left its production target unchanged, and new restrictions on Russian oil kicked in, including an imposed $60 per barrel price cap on Russian oil from the G-7.

Other equity news was relatively light, but Science Applications International topped earnings estimates, and raised its guidance, though V.F. Corp lowered its 2023 outlook.

Asian stocks finished mixed, but mainland China and Hong Kong markets rallied. European stocks diverged amid the eased COVID measures in China and with the oil markets in focus.

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