U.S. Stock Futures Rise Ahead of CES 2025: Focus on Nvidia and Robotics Stocks

U.S. stock futures were on the rise on Monday, resuming a positive trend after a brief losing streak that ended on Friday. All four major indices saw increases in premarket trading.

This week is another short one for the U.S. stock market because it will be closed on Thursday, January 9th, in observance of "National Day of Mourning" for former President Jimmy Carter.

The yields on the 10-year and two-year Treasury notes were at 4.61% and 4.27%, respectively. According to CME Group’s FedWatch tool, there is a 90.9% probability that the interest rates will remain unchanged at the upcoming Federal Open Market Committee meeting on January 31, 2025.

Futures	Change (+/-)
Nasdaq 100	0.70%
S&P 500	0.42%
Dow Jones	0.04%
Russell 2000	0.10%

In early trading on Monday, the SPDR S&P 500 ETF Trust (SPY) rose by 0.42%, reaching $594.44, while the Invesco QQQ Trust ETF (QQQ) climbed 0.74% to $522.40, as reported by market data sources.

Market Recovering After a Decline

Wall Street marked a significant recovery on Friday, shaking off five consecutive days of losses, which was the longest declining streak since April. Investor confidence surged, leading to a rally across major indices with the Nasdaq 100 showing the most substantial gains. This positive momentum was felt in all sectors of the S&P 500.

Furthermore, the last ISM Manufacturing PMI report exceeded expectations, indicating unexpected growth in the manufacturing sector for December, marking the second consecutive month of expansion.

U.S. automakers saw price changes after announcing fourth-quarter delivery numbers, with the consumer discretionary sector performing better than consumer staples in the market.

Index	Performance (+/-)	Value
Nasdaq Composite	1.77%	19,621.68
S&P 500	1.26%	5,942.47
Dow Jones	0.80%	42,732.13
Russell 2000	1.72%	2,268.47

Analysts Share Insights

Ryan Detrick, chief market strategist at Carson Research, noted on social media that historical data suggests stronger annual returns come from years with stock declines at either the start or end of the year. He pointed out that the S&P 500 has dropped on both the last day of the year and the first trading day of the new year in the previous three years, yet 2023 and 2024 ended up performing well.

Looking ahead, economic indicators regarding labor markets for November and December are expected to be released, and Ed Yardeni from Yardeni Research anticipates they will exceed expectations. He believes that as long as corporate earnings reach new records, companies will likely expand their workforce and raise real wages.

According to Yardeni, the Q4-2024 earnings season is about to kick off, led by major banks, with management expected to discuss the impact of AI on productivity. This highlights a trend where companies are trying to position themselves as technology firms, regardless of their primary industry.

Louis Navellier from Navellier and Associates remarked on the solid earnings prospects of tech giants, emphasizing their capability to generate substantial cash flows and less sensitivity to interest rates. He acknowledged the potential of AI to drive productivity, even though it could also lead to reductions in the workforce.

Upcoming Economic Data to Watch

This week will also feature several critical economic data releases that could influence market sentiment:

• On Monday, the final U.S. services PMI for December will be published at 9:45 a.m., ET.
• November factory orders data will follow at 10:00 a.m., ET.
• On Tuesday, Richmond Fed President Tom Barkin will speak at 8:00 a.m., ET, followed by U.S. trade deficit data for November at 8:30 a.m., ET, and ISM services and job openings data at 10:00 a.m., ET.
• On Wednesday, December’s ADP employment report will be available at 8:15 a.m., ET, along with the minutes from the Fed’s December meeting at 2:00 p.m., ET, and consumer credit data at 3:00 p.m., ET.
• Thursday will see the release of initial jobless claims through January 4 at 8:30 a.m., ET, followed by wholesale inventories data for November at 10:00 a.m., ET.
• Finally, on Friday, the comprehensive U.S. employment report for December, including the unemployment rate and hourly wage data, will be available at 8:30 a.m., ET, along with preliminary consumer sentiment data for January at 10:00 a.m., ET.

Stocks to Watch

Several stocks are garnering attention ahead of CES 2025:

• Nvidia Corp. (NVDA) saw a gain of 1.87% in premarket trading, as anticipation builds for CEO Jensen Huang's keynote address at CES 2025, which could significantly impact the semiconductor and AI sectors.
• Robotic stocks are thriving, with Nauticus Robotics Inc. (KITT) rising by 95.26%, Richtech Robotics Inc. (RR) up by 30.81%, Microbot Medical Inc. (MBOT) increasing by 58.81%, and Arbe Robotics Ltd. (ARBE) rising by 16.73% as excitement grows for CES 2025.
• Plug Power (PLUG) gained 7.98% after the Biden administration announced new conditions allowing certain nuclear power plants to qualify for tax credits in clean hydrogen production.
• Both General Motors (GM) and Ford Motor Co. (F) reported robust sales for 2024, leading to increases of 1.26% and 1.42%, respectively, with each seeing their highest sales totals since 2019.
• Cerence Inc. (CRNC) jumped 20.43% after announcing an extended partnership with Nvidia aimed at enhancing their automotive language models.

Commodities and Global Market Overview

In commodities, crude oil futures dipped by 0.04% during early trading, settling around $73.93 per barrel. Gold prices also fell slightly, down 0.37% to $2,644.81 per ounce. The Dollar Index was lower, decreasing by 0.32% to 108.606.

Asian markets mostly recorded declines, with notable downturns in Hong Kong's Hang Seng, Japan's Nikkei 225, India's S&P BSE Sensex, and China's CSI 300 index. Conversely, Australia's ASX 200 and South Korea's Kospi showed slight gains. European markets displayed mixed results.

Stocks, Futures, Economy