US stocks have gone down since last week. Key news includes recent job data and the Warner Bros bidding war. Amazon is planning to invest $10 billion in OpenAI, supplying chips and computing power. OpenAI will buy Amazon’s AI chips and data center services. This partnership will help both companies by boosting demand for Amazon’s offerings and improving OpenAI’s infrastructure.

US Employment Data

The US employment report for November revealed a weak job market, adding 64,000 jobs, which was more than economists expected. Still, the unemployment rate rose from 4.4% to 4.6%. The recent 43-day government shutdown has made the job data less reliable, increasing uncertainty in the employment landscape. The Federal Reserve is under pressure to keep cutting rates, which might help US stocks. The upcoming CPI data for November could further influence the market. Warner Bros has told its stakeholders to turn down Paramount’s takeover offer, favoring its deal with Netflix instead. Everyone is waiting to see if Paramount will enhance its bid or if shareholders will side with Warner Bros and Netflix. This decision could benefit Netflix’s stock. According to technical analysis, the US S&P 500 index is moving sideways, with the RSI indicator close to 50. The future direction of the index could be positive or negative, depending on certain support and resistance levels. Given the S&P 500 is trading sideways, there’s a chance to profit by selling options. The index is stuck between 6788 and 6925, and with the VIX close to a low of 14, selling iron condors with strikes outside this range could be effective. This strategy takes advantage of the current market’s lack of direction and low volatility.

Market Strategies

The upcoming November CPI data is expected to create significant market volatility. Given the mixed employment report, placing a straddle or strangle on a broad market index ETF like SPY prior to the announcement may be wise. This can help traders benefit from a big price movement in either direction, especially as the Federal Reserve’s future decisions become clearer. The investment collaboration between Amazon and OpenAI indicates some risk in the artificial intelligence sector. With the Nasdaq 100 already up over 45% so far in 2025, purchasing medium-term put options on speculative AI stocks or related ETFs could act as a useful hedge. This situation resembles the money flow seen during the late 1990s dot-com bubble, which had unfavorable outcomes for those without safety nets. In the media sector, the bidding war for Warner Bros presents a specific opportunity. With Netflix seeming to be the preferred buyer, we might see its stock stabilize and gain strength. Traders could explore call spreads on Netflix in anticipation of this outcome, while buying puts on Paramount could help hedge against a drop if their offer is turned down. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now