U.S. stock futures were higher on Friday after indices slipped in the first trading session of 2025. All four index futures advanced in premarket trade.
The S&P 500 index fell for the fifth session on Thursday, continuing its losing streak from the last four days of 2024.
The 10-year and two-year Treasury notes yielded 4.55% and 4.24%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 88.8%, according to CME Group’s FedWatch tool.
| Futures | Change (+/-) |
| Nasdaq 100 | 0.40% |
| S&P 500 | 0.27% |
| Dow Jones | 0.20% |
| Russell 2000 | 0.11% |
In premarket trading on Friday, the SPDR S&P 500 ETF Trust SPY was up 0.23% to $586 and the Invesco QQQ Trust ETF QQQ rose 0.35% to $512, according to Benzinga Pro data.
Cues From The Last Session
U.S. stocks fell on Thursday fueled by disappointing Tesla results and mixed economic data. Tesla Inc TLSA shares plummeted over 6% following the release of their fourth-quarter production and delivery figures.
On the economic front, jobless claims unexpectedly decreased, while manufacturing activity contracted further in December. Construction spending also stalled unexpectedly.
Sector performance was mixed, with consumer discretionary, materials, and real estate leading the declines. However, the energy and utilities sectors bucked the trend and closed higher.
The Dow Jones Industrial Average closed lower by approximately 152 points or 0.36% at 42,392.27, while the S&P 500 fell by 0.22% to 5,868.55 and the Nasdaq Composite slipped 0.16% to 19,280.79. Russell 200 was up 0.06% at 2,231.67.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.16% | 19,280.79 |
| S&P 500 | -0.22% | 5,868.55 |
| Dow Jones | -0.36% | 42,392.27 |
| Russell 2000 | 0.06% | 2,231.67 |
Insights From Analysts
As the Santa Rally is seven days long, starting on Christmas Eve, Louis Navellier of Navellier & Associates in his daily market commentary said, “It appears that the disappointing Santa Claus rally is going to stay that way until it’s over. We may not know what January is telling us until next week, the first full trading week of the year.”
He added that “January in general is when many institutional funds start taking new positions for the new year strategy.”
As the Russell 2000 index did not fall in trade over the last two trading sessions, Kevin Gordon, the director and senior investment strategist at Charles Schwab said “Small caps are outperforming big tech in 2025.”
Some analysts have expressed concerns about high valuations in the U.S. equity market. "Optimistic analyst targets, stretched positioning and high valuations leave the market vulnerable to larger pullbacks in our view, should we see any of the rosy projections falling short of lofty expectations,” said Mario Georgiou, executive director and head of investments at InCred Global Wealth.
"I think all investors agree that valuations are high and fully priced (Trailing P/E of 24+), leaving little room for positive equity returns to come from multiple expansions."
See Also: How To Trade Futures
Upcoming Economic Data
Only one economic data will be released today.
- On Friday, ISM manufacturing data for December will be announced at 10:00 a.m., ET.
Stocks In Focus:
- Tesla Inc. TSLA was up 1.43% in premarket despite Thursday’s drop following its lower production and delivery figures. Also, Elon Musk donated 268,000 shares to charity.
- Lifecore Biomedical Inc. LFCR was up 5.26% after it posted better-than-expected results for its second quarter. The company reported a quarterly loss of 25 cents per share, compared to market expectations of a loss of 29 cents per share.
- SPS Commerce Inc. SPSC was down 3.73% after it reached an agreement to acquire Carbon6 Technologies Inc for $210 million.
- Resources Connection Inc. RGP was up 6.31% after it posted upbeat results for its second quarter. The company reported quarterly earnings of 18 cents per share on sales of $145.60 million.
- Bumble Inc. BMBL was down 0.13% after Wolfe Research downgraded the stock to ‘peer perform’ from ‘market perform’ late Thursday.
- Ondas Holdings Inc. ONDS was up 23.57% after it raised an additional $18.9 million through 3% senior convertible notes due 2026 from an existing note holder.
Commodities, Gold And Global Equity Markets:
Crude oil futures were lower in the early New York session by 0.34% to hover around $72.88 per barrel.
The gold spot index was down by 0.03% to $2,668.10 per ounce. The Dollar Index was up 0.27% to 109.097 level.
Asian markets were mixed on Friday as Japan’s Nikkei 225 and China’s CSI 300 declined. Whereas, South Korea’s Kospi, Hong Kong’s Hang Seng, and Australia’s ASX 200 index ended higher.
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