US equities have decreased since last week. The recent US employment data and developments in the Warner Bros bidding war are notable. Amazon plans to invest $10 billion in OpenAI, providing chips and computing power. OpenAI will purchase Amazon’s AI chips and data centre capacity, benefitting both parties with increased demand for Amazon’s services and enhanced OpenAI infrastructure.
US Employment Data
The US employment data for November showed a soft labour market with 64,000 jobs added, surpassing economists’ expectations. However, the unemployment rate increased from 4.4% to 4.6%. The 43-day government shutdown has distorted the data, adding uncertainty to the employment market’s state. There is pressure on the Federal Reserve to maintain a rate-cutting path, which could support US equities. Upcoming CPI rates for November may impact the market further.
Warner Bros has advised stakeholders to reject Paramount’s takeover bid, valuing their agreement with Netflix more. Attention is on whether Paramount will improve its bid or if shareholders will align with Warner Bros and Netflix. This could positively affect Netflix’s stock.
The US S&P 500 index shows sideways movement, according to technical analysis, with the RSI indicator near 50. The index’s future could see a bullish or bearish outlook, hinging on changes relative to specific support and resistance levels.
With the S&P 500 trading sideways, we see an opportunity in selling options premium. The index has been caught between 6788 and 6925, and with the VIX hovering near a low of 14, selling iron condors with strikes outside this range could be a viable strategy. This approach profits from the market’s lack of direction and low volatility in the immediate term.
Market Strategies
The upcoming November CPI data presents a major volatility event for the market. Given the uncertainty following the mixed jobs report, placing a straddle or strangle on a broad market index ETF like SPY before the announcement could be prudent. This allows a trader to capitalize on a significant price swing in either direction, which is likely once the Federal Reserve’s path becomes clearer.
We see the circular investment between Amazon and OpenAI as a sign of froth in the artificial intelligence sector. Considering the Nasdaq 100 has already surged over 45% year-to-date in 2025, buying medium-term put options on highly speculative AI names or related ETFs could serve as a valuable hedge. This resembles the capital flow seen during the dot-com era of the late 1990s, which we remember did not end well for those without protection.
In the media space, the bidding war for Warner Bros. introduces a specific opportunity. With Netflix appearing to be the favored suitor, we could see its stock gain stability and momentum. Traders might consider call spreads on Netflix to bet on this outcome, while buying puts on Paramount could be a way to position for a drop if their bid is officially rejected.
