CNBC Daily Open: U.S. stocks began December chilly, but will probably warm up soon

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Martial law declared and lifted in South Korea 
South Korean President Yoon Suk Yeol declared early Wednesday morning he would lift emergency martial law after the National Assembly voted to overturn Yoon's decree issued late Tuesday night. Yoon has in recent weeks clashed with the opposition party over 2025's budget. In his announcement lifting martial law, Yoon called for lawmakers to cease "budget manipulation." 

South Korean markets roiling 
South Korean markets opened lower on Wednesday after political turmoil rocked the country overnight. The Kospi was last down more than 2%. The won rebounded from earlier steep losses — it plunged to a two-year low against the U.S. dollar — but still ended the day lower against the greenback. Likewise, South Korean stocks listed in the U.S. fell before paring some losses. 

U.S. markets traded mixed 
U.S. markets were mixed on Tuesday. The S&P 500 was flat, the Dow Jones Industrial Average fell but the Nasdaq Composite rose. Europe's regional Stoxx 600 added 0.37%. France's CAC 40 ended the day 0.26% higher as traders assessed news that the country's Prime Minister Michel Barnier will push through a budget bill without a parliamentary vote. 

BlackRock expanding in private credit 
BlackRock will acquire HPS Investment Partners, a firm focusing on private credit investments, for $12 billion, the company announced Tuesday. The deal will position BlackRock, the world's largest asset manager, better in the private credit space. HPS was planning to go public, but that move attracted BlackRock's eye, according to sources. 

[PRO] Scrutinizing policies more than data 
Ever since inflation in the U.S. shot up, the monthly jobs report, along with inflation readings, have become key pieces of economic data that swayed markets. With disinflation in progress, traders seem to be redirecting their attention to U.S. President-elect Donald Trump's economic policies.  

The bottom line

December may have triggered the thawing of Mariah Carey, but stocks are beginning the month chilly. 

The S&P 500 was essentially flat and the Dow Jones Industrial Average dropped 0.17%. The Nasdaq Composite, however, managed to climb 0.4%, thanks to Apple rising 1.3% for a new 52-week high. 

It's unlikely that stocks will remain in permafrost this month.  

December's historically the third-best month of the year, according to the Stock Trader's Almanac.  

The stock market may falter a little at the start of December, writes CNBC's Bob Pisani, because of tax loss selling – a phenomenon in which investors sell assets that are making a loss to reduce the tax burden on other assets making capital gains. But stocks tend to regain forward momentum as the year wraps up. 

"These strong returns are historically often back-end loaded," said George Smith, portfolio strategist at LPL Financial. 

Moreover, in presidential election years, December typically moves up one notch to become the second-best month for stocks. 

As Ken Mahoney, CEO of Mahoney Asset Management, noted, "When the market is up 10% or more with a newly elected President, it has never gone down in the month of December."  

Also, investors are likely awaiting the U.S. jobs report for November, out this Friday, before making any major moves. The numbers will be the U.S. Federal Reserve's last look at the labor market before their rate-setting meeting from December 17 to 18. 

The markets are currently pricing in a 72.9% chance the Fed will lower rates by 25 basis points at that meeting, a more optimistic bet than the 59.4% last week, according to the CME FedWatch tool. 

If the Fed does cut rates, that incision will probably scrape off any lingering frostbite on the stock market as well, in time for them to hear sleigh bells ringing. 

— CNBC's Bob Pisani, Sarah Min, Hakyung Kim, Sean Conlon, Lisa Kailai Han and Alex Harring contributed to this report.