U.S. stock futures advanced for the third consecutive session on Tuesday, led by gains in technology shares, particularly Nvidia. Futures linked to the S&P 500 climbed 0.3%, while Nasdaq 100 futures rose 0.2%. Futures tied to the Dow Jones Industrial Average gained 123 points, or 0.3%. Shares of Nvidia jumped 2.3% in premarket trading following the launch of its new Blackwell-architecture-based chips for desktop and laptop PCs.
In contrast, Tesla shares fell 2% after Bank of America downgraded the electric vehicle manufacturer, citing concerns over its valuation and strategic risks. Monday’s stock market gains were driven in part by strength in semiconductor stocks after Foxconn reported record fourth-quarter revenue. Optimism was also boosted by a report suggesting that President-elect Donald Trump’s proposed tariff policies may be more limited than initially feared. However, Trump later disputed the report in a statement. Market analysts are cautioning investors about potential volatility in 2025.
Cameron Dawson, Chief Investment Officer at NewEdge Wealth, warned that high valuations and investor positioning could lead to uneven performance. Attention is now focused on key economic data due this week. The Job Openings and Labor Turnover Survey (JOLTS) is expected Tuesday, followed by the ADP private payrolls report on Wednesday. The most significant release comes Friday with December’s nonfarm payrolls report, which may influence future Federal Reserve policy decisions.
Meanwhile, BTIG strategist Jonathan Krinsky highlighted technical levels in the Invesco QQQ Trust. Krinsky suggested that the Nasdaq’s recent resilience has pushed it to a crucial point, where bearish traders may attempt to stall the rally. The New York Stock Exchange will observe a shortened trading week, closing Thursday in honor of the late former President Jimmy Carter. Investors remain focused on economic reports and earnings as markets respond to shifting economic and political developments. – By MENA Newswire News Desk.