US Stock Likely To Open Higher Ahead of Trump's Inauguration

On Friday morning, U.S. stock futures were showing signs of recovery after a decline the previous day. All major indices reported increases in their futures trading, signaling a positive trend.

While the S&P 500 ended its winning streak on Thursday, a strong trading session on Friday could lead to the best weekly performance for the index since the election in November.

The yields on the 10-year Treasury note reached 4.60%, whereas the two-year note stood at 4.23%. Anticipation for the upcoming Federal Reserve meeting scheduled for January 31 indicates that there is a significant likelihood of 97.3% that interest rates will remain unchanged, based on data from CME Group’s FedWatch tool.

Futures	Change (+/-)
Nasdaq 100	0.48%
S&P 500	0.33%
Dow Jones	0.06%
Russell 2000	-0.19%

Major stock market ETFs, such as the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), also reflected positive pre-market trading. SPY was up by 0.35% at $593.70, while QQQ saw a climb of 0.44%, reaching $515.33.

Cues From The Last Session

U.S. stocks experienced a downturn on Thursday, breaking a three-day winning streak largely due to significant declines in the technology sector, particularly impacting shares of Apple Inc. (AAPL) and Nvidia Corp (NVDA).

However, positive earnings were reported by major firms such as Bank of America Corp. (BAC) and Morgan Stanley (MS). Still, slower retail sales growth in December and a slight rise in jobless claims may have negatively impacted investor sentiment.

While most sectors concluded the day positively, including utilities, real estate, and industrials, the technology and communication services sectors caused downward pressure on the overall market.

Index	Performance (+/-)	Value
Nasdaq Composite	-0.89%	19,338.29
S&P 500	-0.21%	5,937.34
Dow Jones	-0.16%	43,153.13
Russell 2000	0.15%	2,266.79

Insights From Analysts

With Donald Trump preparing to take office on Monday, December 20, expert analyst Robin Brooks from the Brookings Institution warns that ongoing tariff disputes between the U.S. and China could adversely affect the S&P 500. Brooks notes that a strategic move by China could include devaluing the yuan to counterbalance any additional U.S. tariffs, which could tighten financial conditions and hurt the U.S. economy.

Despite potential mitigation measures, such as targeted tariffs or a phased approach, Brooks indicates that increased market volatility is likely in the coming months.

Meanwhile, Callie Cox, a chief market strategist, shares a positive outlook for corporate earnings in 2025, forecasting that all 11 sectors of the S&P 500 will report profit increases, a notable first since 2018. Wall Street anticipates a strong year for S&P 500 companies.

According to Carson Research’s analysis of past bull markets, including the historical spans of the 1987 and 2002 bull markets at five years each, the lengthy 2009 bull market lasted 11 years, while another extended for 12.3 years, indicating that the current bull market could still have significant longevity.

Bull Markets Over The Last 50 Years	Total Duration (In Years)
August 1982-1987	5
October 2002-2007	5
September 1974 to November 1980	6.2
February 2009-2020	11
January 1988 to March 2000	12.3
Average	7.9

Upcoming Economic Data

On Friday, notable economic announcements are expected. Housing starts and building permits for December are scheduled for release at 8:30 a.m. ET, while industrial production and capacity utilization data for the same month will follow at 9:15 a.m. ET.

Stocks In Focus

Fastenal Co. (FAST) was up 0.17% in pre-market trading as expectations build for its quarterly earnings report, anticipated to be 48 cents per share on a revenue of $1.84 billion.

State Street Corp. (STT) saw a slight increase of 0.01% ahead of its earnings report, with analysts forecasting earnings of $2.43 per share on $3.32 billion in revenue.

Schlumberger NV (SLB) was also up by 0.51% in premarket trading as investors expect earnings of 90 cents per share on revenues of $9.18 billion.

Conversely, JB Hunt Transport Services Inc. (JBHT) dropped 10.85% following disappointing fourth-quarter earnings. In contrast, Versus Systems Inc. (VS) surged by 83.85% after announcing its expansion into Brazil.

iSpecimen Inc. (ISPC), known for its online marketplace for biospecimens, rose by 44.56% after securing important virus specimens amidst rising cases in China.

Qorvo Inc. (QRVO) was up by 7.09% after an activist investor took a significant stake in the struggling semiconductor firm.

Commodities, Gold And Global Equity Markets

Crude oil futures increased by 0.32%, hovering around $78.10 per barrel in early trading. Meanwhile, the gold spot index fell 0.77% to $2,729.99 per ounce, while the Dollar Index rose by 0.13% to 109.104.

Most Asian markets closed lower on Friday, including Australia's ASX 200, Japan's Nikkei 225, and South Korea's Kospi index, while Hong Kong's Hang Seng and China's CSI 300 index saw gains. European markets were mostly higher as well.

Looking Ahead

Investors should stay tuned for more updates on market performance and economic indicators as the week progresses.

Stock, Market, Earnings