Stock Market Open on Black Friday Amid CME Trading Halt

On November 28, 2023, the US stock markets are open for Black Friday, but trading is significantly impacted by a major outage at the CME Group. This disruption has halted futures and options trading linked to equities, bonds, and commodities, creating unusual circumstances for investors returning after the Thanksgiving holiday. The outage is attributed to a cooling issue at a data center operated by CyrusOne.

The CME Group announced, “BrokerTec EU markets are open and trading. All other CME Group markets remain halted due to a data center cooling issue at CyrusOne. We will provide updates as they are available.” This situation has led to a subdued atmosphere in futures trading as investors navigate the complexities of the day.

Shortened Trading Hours on Black Friday

Despite the futures trading halt, regular stock trading is proceeding on a shortened schedule. The New York Stock Exchange (NYSE), Nasdaq, and over-the-counter markets opened at 09:30 ET and will close at 13:00 ET. Eligible options will remain open until 13:15 ET, while bond markets began trading at 08:00 ET and will close at 14:00 ET.

Before the CME outage, futures were showing modest gains. The Dow Jones futures rose by 0.11%, the S&P 500 futures added 0.1%, the Nasdaq 100 futures gained 0.18%, and the Russell 2000 futures were up 0.13%. In early trading, the SPDR S&P 500 ETF Trust (SPY) increased by 0.28%, the Invesco QQQ Trust (QQQ) gained 0.43%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) added 0.24%.

Key Stocks and Market Reactions

Several stocks are drawing attention in light of the CME outage. Shares of Tesla (TSLA) were up by 0.4% in pre-market trading as the company announced free Full Self-Driving rides in several European countries, ahead of a broader rollout planned for next year. Conversely, Security Matters (SMX) saw a remarkable surge of 71% in pre-market trading after showcasing its molecular identity technology at the DMCC Precious Metals conference in Dubai.

On the downside, Tilray Brands (TLRY) experienced a significant drop of nearly 14% after executing a previously approved 1-for-10 reverse stock split. Other companies, including Globus Maritime (GLBS), Nordic American Tankers (NAT), and Freight Technologies (FRGT), are set to report quarterly earnings today, adding another layer of interest to the market.

Foreign stock exchanges, including those in Shanghai, Hong Kong, Tokyo, and London, remain open for business. Financial institutions, the U.S. Postal Service, and UPS are operating as well, though some FedEx services are limited to exclude FedEx Freight.

Historically, the stock market tends to perform well during the period from the Wednesday before Thanksgiving through the week following Black Friday. The S&P 500 gained 1.5% during this stretch last year, following increases of 0.8% in 2022 and 1.1% in 2021. In contrast, the index saw a decline of 3.5% in 2021 over the same period.

As investors continue to adapt to these unusual trading conditions, the impact of the CME outage on market dynamics will be closely monitored. Regular stock markets remain open, providing opportunities for traders while futures and options await resolution of the technical issues at the CME Group.