U.S. stocks could open on a tentative note on Tuesday after the averages closed on a mixed note on Monday. Despite a rally in AI stocks and chip-making companies, futures were mixed on Tuesday, pointing at cautiousness among investors.
On investors' radar will be AI bellwether Nvidia Corp. NVDA, Advanced Micro Devices Inc. AMD, Micron Technology Inc. MU, and Toyota Motor Corp. TM, among others.
| Futures | Change (+/-) |
| Nasdaq 100 | -0.023% |
| S&P 500 | 0.079% |
| Dow Jones | 0.11% |
| R2K | 0.15% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust SPY edged up by 0.12% to $596.08 and the Invesco QQQ ETF QQQ declined 0.03% to $524.40, according to Benzinga Pro data.
Cues From Last Session:
U.S. stocks ended Monday on a mixed note, with Nasdaq and S&P 500 closing the day in green, while the Dow Jones registered a decline.
Crude oil prices remained under the $75 mark but continued to edge up due to concerns about strained supply.
Chipmakers led the rally after Foxconn reported record fourth-quarter revenue. Nvidia shares rose 3.4%, while Micron Technology surged 10.5%, marking some of the session’s strongest performances.
Treasury yields edged up again as investors await Federal Reserve chair Jerome Powell's speech on the economic outlook.
On the economic data front, the U.S. annual inflation rate rose to 2.6% in October from 2.4% in the previous month, in line with market estimates. The CPI rose 0.2% month-over-month in October.
Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, energy, and real estate stocks recording the biggest gains on Monday.
However, information technology and communication services stocks bucked the overall market trend, closing the session lower.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 1.24% | 19,864.98 |
| S&P 500 | 0.55% | 5,975.38 |
| Dow Jones | -0.06% | 42,706.56 |
| Russell 2000 | -0.08% | 2,266.65 |
Insights From Analysts:
WisdomTree and Wharton School economist Jeremy Siegel underscored that one of the reasons for the tentative markets is uncertainty surrounding President-elect Donald Trump's economic policies.
"The market expects immediate action on tariffs, though implementation will take months. Regulatory skepticism for big tech persists, raising questions about the growth potential in this key sector," he said.
Siegel also observed the reliance of markets on AI and tech stocks, noting that the signs of market rotation to other sectors are "still notably absent."
"I could see a market correction in the broad market and a bear market in the Nasdaq if our long-waited market rotation occurs, but the catalyst for this rotation has yet to arrive."
Analysts at the BlackRock Investment Institute echoed similar sentiments while noting that this overreliance on AI and tech stocks could be causing some jitters in the markets.
"Our overweight is grounded in the artificial intelligence (AI) theme, robust economic growth and broadening earnings growth. Soaring tech valuations and the concentration of returns in just a few tech companies caused some market jitters."
Despite this, they observed that this is a feature, not a flaw.
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Upcoming Economic Data
Here are the key economic events scheduled for Tuesday and the rest of the week:
- On Tuesday, Richmond Fed President Tom Barkin will be speaking at 8:00 a.m., ET.
- U.S. trade deficit data for November will be released at 8:30 a.m., ET.
- ISM services data for December and job openings data for November will be announced at 10:00 a.m., ET.
- On Wednesday, December’s ADP employment data will be released at 8:15 a.m., ET.
- The minutes of the Fed’s December FOMC meeting will be released at 2:00 p.m., ET.
- Consumer credit data for December will be announced at 3:00 p.m., ET.
- On Thursday, initial jobless claims till Jan. 4 will be announced at 8:30 a.m., ET.
- Wholesale inventories data for November will be released at 10:00 a.m., ET.
- On Friday, the U.S. employment report, unemployment rate, and hourly wages data for December along with hourly wages year over year will be released at 8:30 a.m., ET.
- The preliminary consumer sentiment data for January will be announced at 10:00 a.m., ET.
Stocks In Focus:
- Lucid Group LCID rose 1.20% in Tuesday’s premarket after the company announced that the highly anticipated Lucid Gravity Grand Touring will be powered by Panasonic Energy’s lithium-ion EV battery cells.
- Nvidia gained 2.34% after CEO Jensen Huang delivered the keynote at CES 2025.
- Uber UBER gained 1.64% after the ride-hailing company and NVIDIA entered into a strategic partnership aimed at advancing AI-powered autonomous vehicle (AV) technology.
- Meta Platforms Inc. META declined 0.63% after the company officially halted sales of the Quest Pro, as noted by UploadVR.
- Getty Images Holdings GETY gained 74.71% and Shutterstock SSTK was up 39.77% after they announced a merger of equals, combining to create a premier visual content company with an enterprise value of approximately $3.7 billion.
Commodities, Bonds And Global Equity Markets:
Crude oil futures surged in the early New York session, rising by 0.42% to hover around $68.72 per barrel.
The 10-year Treasury note yield edged up about to 4.457%.
Most of the major Asian markets ended in the red on Thursday, but European markets were in the green in early trading.
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