US equity futures opened the week mixed, with attention on whether hi-tech shares can recover ahead of key US inflation data and Core Weave’s earnings after Tuesday’s close. Political risk remained in focus after strong Democratic midterm results raised the prospect of tighter rules around construction energy use and the development costs of AI technology. Separately, Nvidia faced weekend turmoil after its board moved to open an investigation into co-founder and chief executive Jensen Huang over an alleged affair involving a suspected Chinese spy.
Gold firmed in the Asian session but stayed range-bound, holding steady even after a stronger-than-expected October US employment report and a brief pullback. Oil slipped as Gulf tensions flared then cooled following comments from US President Trump that fresh attacks on Iran were highly unlikely, while recovering Middle Eastern output fed talk of a potential glut. Diary points include speeches from Chicago Fed President Goolsbee, Richmond Fed President Barkin and BoE Governor Bailey, plus Japan’s household spending, Australia’s confidence data, and Norway and the Czech Republic’s CPI. Technical levels flagged Nasdaq resistance at 27,050, with support at 25,375 and the RSI near 30; XAU/USD traded between 3,960 and 4,275, with the RSI near 50.
Derivative Strategies for US Tech, Gold, and Oil
We suggest derivative traders prepare for heightened volatility in US tech futures as the Nasdaq hovers near the 27050 resistance line while sitting in oversold territory near an RSI reading of 30. Historically, oversold tech indices following major events tend to experience relief rallies, with past data showing average short-term rebounds of 3% to 5% after reaching such low technical levels. Traders might consider short-term upside positions above the 25375 support level while monitoring upcoming inflation reports and key earnings releases.
Given the unexpected corporate governance inquiry at Nvidia and regulatory concerns following midterm election results, we recommend using downside protective options on tech assets. Historical corporate events of similar management disruption have triggered temporary drawdowns of 7% to 12% across affected tech sectors. Put options targeting levels below 25375 could provide cost-effective protection if selling pressure pushes the index down toward the 23965 support area.
For gold derivatives, we advise adopting range-bound strategies while prices remain stable between the 3960 support and 4275 resistance targets. Stronger US employment figures usually pressure precious metals, yet gold’s resilience reflects persistent central bank purchases, which averaged over 1,000 metric tons annually in recent years. Neutral strategies could benefit traders until gold definitively breaches the 4275 resistance or drops below the 3960 support line.
We urge energy traders to position for continued weakness in crude oil futures as Middle Eastern supply rebounds and geopolitical risk premiums fade. Historically, when geopolitical tension subsides alongside expanding global supply, crude oil prices frequently experience multi-week declines averaging 6% to 10%. Positioning on temporary price bounces could prove effective, particularly if upcoming trade data indicates sluggish global demand.
Risk Management Ahead of Economic Data
We recommend scaling back position sizing across multi-asset derivatives ahead of key economic prints like US CPI and regional GDP reports. Historical volatility tracking shows options implied volatility routinely rises by 15% to 25% immediately preceding major inflation releases. Traders can take advantage of these macro events by employing volatility strategies to capture sharp price moves across major indices and currencies.
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