Stock futures rose on Tuesday after Monday’s mixed close. Futures contracts for the four major indexes rose in trading before the market opened. Tech stocks sent the Nasdaq plunging on Monday, while the Dow, which has the fewest tech stocks, rose during the session.
Members of the president-elect’s incoming economic team Donald Trump are considering a gradual increase in tariffs over several months, Bloomberg reported. This approach aims to increase room for trading while minimizing the risk of a sudden increase in inflation.
Investors are now awaiting the release of consumer price inflation data on Wednesday, which will further clarify the outlook for the Fed regarding a pause in rate cuts.
The yields on the 10-year and 2-year Treasury bills stood at 4.77% and 4.38%, respectively. The chance of no change in interest rates for the Jan. 31 decision was 97.3%, according to the CME Group’s FedWatch tool. from CME Group.
| Futures contracts | Change (+/-) |
| Nasdaq 100 | 0,71% |
| S&P 500 | 0,54% |
| Dow Jones | 0,38% |
| Russell 2000 | 0,67% |
During pre-market trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.54% to $584.53, and the ETF Invesco QQQ Trust (NASDAQ:QQQ) rose 0.73% to $509.23, according to data from Benzinga Pro.
Indications from the last session
Wall Street saw mixed trading on Monday. The Dow Jones, made up of 30 major companies, saw a substantial increase, driven by a rebalancing of investments towards sectors outside of technology. On the other hand, the Nasdaq, heavily weighted in favor of technology companies, recorded a slight decline. The broader S&P 500 index rose modestly.
This market activity follows a two-week period of declining stock prices, primarily attributed to selling in technology stocks. However, the Russell 2000 index, which tracks small company stocks, showed an uptick.
While technology stocks faced headwinds, the energy sector outperformed the market, boosted by rising oil prices. The healthcare and materials sectors also posted gains.
On Monday, the Dow rose 358.67 points (0.86%) to close at 42,297.12. The Nasdaq fell 0.38% to end at 19,088.10. The S&P 500 edged up 0.16% to end at 5,836.22. Russell 2000, on the other hand, rose 0.24% to 2,194.50 points.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0,38% | 19 088,10 |
| S&P 500 | 0,16% | 5 836,22 |
| Dow Jones | 0,86% | 42 297,12 |
| Russell 2000 | 0,24% | 2 194,50 |
Analysts’ views
Despite tech stocks falling on Monday, Jeremy Siegelsenior economist at WisdomTree, said growth stocks, particularly in the technology sector, remain dominant. “The AI-led investing narrative continues to support these high-growth names, with no definitive sign of a pivot to values,” he added.
He described markets as being “overly optimistic” as the S&P 500 trades at 23 times forward earnings. According to Siegel, the consensus for 16% earnings growth in 2025 is probably too high, and an increase of 8% to 9% would be more realistic. “As a result, the market could see a correction as valuations adjust to higher rates and subdued growth expectations,” he said.
BlackRock analysts, on the other hand, said they were “pro-risk” and overweight U.S. stocks. However, they highlighted three areas that could change their views, including how tariffs and U.S. fiscal policy are shaping up.
-Analysts are also watching “high corporate profits and technology valuations” amid the deployment of artificial intelligence to see if it could dampen investors’ appetite for risk. Finally, the analysts said, “We look for elevated vulnerabilities, such as surging bond yields as markets discount rate cuts and refinancing of corporate debt at higher interest rates.”
Jim Cramer of CNBC offered insights into the recent setbacks of the Nasdaq Composite, which has failed to recover despite gains posted by the other major indexes. Cramer attributed the Nasdaq decline to a “one-shot” by the U.S. government. Over the weekend, the Biden administration introduced new restrictions on semiconductor exports, which Cramer criticized for being “short-sighted” on Monday.
Also read: How to trade futures contracts
Upcoming economic data
- Small Business Optimism Index for December, to be released at 6:00 a.m. ET.
- Producer Price Index data for December, to be announced at 8:30 a.m. ET.
- Kansas City Fed President Jeffrey Schmid will speak at 10:00 a.m. ET.
- The Fed will release its Beige Book at 2:00 p.m. ET.
- New York Fed President John Williams will deliver his keynote address on the policy at 3:05 p.m. ET.
- On Wednesday, data from the Consumer Price Indexes for December and the Empire State Manufacturing Survey for January will be announced at 8:30 a.m. ET.
- Richmond Fed President Thomas Barkin will speak at 9:00 a.m. ET.
- New York Fed President John Williams will speak at 11:00 a.m. ET.
- Chicago Fed President Austan Goolsbee will speak at 12:00 p.m. ET.
- On Thursday, initial unemployment claims through Jan. 11 will be released at 8:30 a.m. ET.
- Retail sales for December, the Import Price Index and the Philadelphia Fed manufacturing survey for January will be announced at 8:30 a.m. ET.
- Business inventory data for November and the Builder Confidence Index for January will be released at 10:00 a.m. ET.
- On Friday, housing starts and building permits data for December will be released at 8:30 a.m. ET.
- Industrial production and capacity utilization for December will be announced at 9:15 a.m. ET.
Actions to watch out for:
- Calavo Growers Inc (NASDAQ:CVGW) was up 3.56% before the market opened, with analysts expecting it to report quarterly earnings of 30 cents per share on revenue of 161.93 million dollars after the closing bell.
- KB Home (NYSE:KBH) gained 8.82% after reporting better-than-expected fourth-quarter revenue of $2 billion, beating analyst estimates of $1.99 billion.
- Aehr Test Systems (NASDAQ:AEHR) fell 19.07% after reporting worse-than-expected second-quarter financial results on Monday.
- Applied Digital Corp (NASDAQ:APLD) rose 5.34%, with analysts expecting it to post a quarterly loss of 15 cents per share on revenue of $63.4 million after the closing bell .
- Nature’s Miracle Holding Inc (NASDAQ:NMHI) rose 100% after signing a securities sales agreement with a single institutional investor to sell up to $29.7 million of the total of a new class of convertible preferred stock.
- P3 Health Partners (NASDAQ:PIII) soared 33.04% after announcing that it will attend the 43rd annual JP Morgan Healthcare Conference in San Francisco, California later today.
Commodities, gold and global stock markets
Crude oil futures fell 0.72% in early trading in New York to around $76.74 a barrel.
The SPOT gold index fell 0.02% to settle at $2,678.14 an ounce. The dollar index fell 0.34% to 109.587.
Asian markets closed higher on Tuesday, with Hong Kong’s Hang Seng, India’s S&P BSE Sensex, China’s CSI 300, Australia’s ASX 200 and South Korea’s Kospi all rising. However, Japan’s Nikkei 225 index fell. European markets were also up.
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How to trade futures
Economic data to come
- Small Business Optimism Index for December, to be released at 6:00 a.m. ET.
- Producer Price Index data for December, to be announced at 8:30 a.m. ET.
- Kansas City Fed President Jeffrey Schmid will speak at 10:00 a.m. ET.
- The Fed will release its Beige Book at 2:00 p.m. ET.
- New York Fed President John Williams will deliver his keynote address on the policy at 3:05 p.m. ET.
- On Wednesday, data from the Consumer Price Indexes for December and the Empire State Manufacturing Survey for January will be announced at 8:30 a.m. ET.
- Richmond Fed President Thomas Barkin will speak at 9:00 a.m. ET.
- New York Fed President John Williams will speak at 11:00 a.m. ET.
- Chicago Fed President Austan Goolsbee will speak at 12:00 p.m. ET.
- On Thursday, initial unemployment benefit claims through Jan. 11 will be released at 8:30 a.m. ET.
- December retail sales, import price index and Philadelphia Fed manufacturing survey for the month of
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