As U.S. stock index futures trade flat this morning, investors are focusing on key economic data releases and policy signals from the incoming Trump administration. Here’s what you need to know:
Economic Data to Watch
The spotlight today is on two major reports due at 10 a.m. ET:
- Job Openings and Labor Turnover Survey (JOLTS) for November.
- Institute for Supply Management (ISM) Services Activity Index for December.
These reports are critical for gauging economic resilience. Any signs of strength could delay the Federal Reserve’s anticipated monetary easing cycle.
Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management, noted, “A move higher in unemployment could create a challenge for the Fed. Cutting rates too aggressively risks reawakening inflation, while a cautious approach could reveal new economic weaknesses.”
The non-farm payrolls report, due later this week, will add further clarity.
Market Snapshot
As of 7:10 a.m. ET:
- Dow E-minis: +40 points (+0.09%)
- S&P 500 E-minis: +5 points (+0.08%)
- Nasdaq 100 E-minis: -3.5 points (-0.02%)
The 10-year Treasury yield remains elevated at 4.63%, its highest since May 2024. Markets are pricing in a dovish Fed stance by mid-2025, with a potential 50-basis-point rate cut. Fed minutes from December are due Wednesday, and comments from Richmond Fed President Thomas Barkin today will be closely monitored.
Tech Giants Lead Premarket Movers
- NVIDIA (NVDA) rose 2.4% after unveiling new products and partnerships at a major tech event in Las Vegas. The AI leader is poised to overtake Apple (AAPL) as the most valuable company if gains hold.
- Apple (AAPL) slipped 1% following a downgrade from MoffettNathanson to “Sell.”
- Micron Technology (MU) climbed 3.9% after NVIDIA revealed its role in supplying memory for the next-gen GeForce RTX 50 Blackwell gaming chips.
Tesla in the Spotlight
Tesla (TSLA) shares fell 1.4% premarket after the National Highway Traffic Safety Administration opened a probe into crashes linked to its driverless technology.
Separately, Bank of America downgraded Tesla to Neutral from Buy, raising its price target to $490 but citing “execution risk.” Analysts highlighted Tesla’s upcoming robotaxi service, valued at $420 billion in the U.S. and $800 billion globally, as a major growth driver. Despite initial challenges, Tesla’s cost advantage over competitors like Uber and Lyft could make its service a long-term winner.
Tesla’s Full Self-Driving (FSD) technology, projected to hit $480 billion in valuation, is gaining traction, especially with Cybertruck buyers, where adoption rose to 60% in 2024.
U.S.-China Tensions Escalate
The Department of Defense has blacklisted Chinese tech firms Tencent and CATL over alleged ties to Beijing’s military, further straining U.S.-China relations. Both companies deny the allegations.
Energy and Appliance Policies
President-elect Donald Trump is reportedly drafting an executive order to protect gas-powered appliances from federal and local restrictions. This aligns with Republican opposition to regulations phasing out gas appliances over environmental concerns.
Stay tuned in OP Gold Chat for further updates and insights, and remember to always Stack Your Gains!
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