Futures linked to the DOW JONES rose 0.15% to 42,457 points, while those of the S&P 500 rose 0.23%, to 5,883 points. Futures linked to the NASDAQ 100 advance 0.39% to 21,055 points.
The major New York indices are coming off a hectic first day of January, in which investors finally chose to continue taking profits on some of the big winners of 2024, such as Apple and Tesla. After rising more than 300 points, the Dow Jones ended up losing 151 points, or 0.36%, while the S&P 500 ended up losing 0.22% and the technology Nasdaq lost 0.16%.
These moves come after stocks ended 2024 on a sour note, with the S&P 500 closing the year with four consecutive days of losses, the first time that has happened since 1966. The index posted a notable 23% gain for the year, but fell 2.5% in December. The Santa Claus rally, in which stocks gain in the last five trading days of one year and the first two of the next, has not come true this time.
Stocks are on track to close the week with losses. At Thursday’s close, the Dow Jones and S&P 500 were down more than 1% each. The Nasdaq Composite fell more than 2%.
Analysts have pointed to uncertainty over the policies that incoming US President Donald Trump’s administration could implement, given that his Republican Party also dominates Congress. The newly elected Congress will begin its first session on Friday, although Trump will not be sworn in until January 20.
Trump’s proposals to cut corporate taxes, loosen regulations, impose tariffs and clamp down on illegal immigration could boost corporate profitability and the economy, but they also threaten to reignite inflation and hamper the pace of tax cuts. guys.
The economic calendar does not have many catalysts this week, but on Friday traders will be attentive to the latest reading of the ISM manufacturing index.
On the business front, US Steel shares fall 8.5% in pre-open after The Washington Post has anticipated that he still US President Joe Biden has decided to block the acquisition for almost 15,000 million dollars from the company by the Japanese steel company Nippon Steel.
The Japanese steelmaker had announced last week an extension of the deadline to close the transaction until the first quarter of 2025, while trying to make some transfer to obtain presidential approval. The agreement, which was supported in April by US Steel shareholders, was also opposed by President-elect Donald Trump.
In fixed income, always very sensitive to changes in monetary policy, the ten-year bond yield remains close to the psychological level of 4.5%as investors assess rate expectations for next year. According to CME Group’s FedWatch tool, traders believe the Federal Reserve will cut interest rates by about 50 basis points this year as data continues to indicate resilience in the economy.
Investors will also have to pay attention to Apple’s price, which is currently moving negatively after yesterday’s falls. A report from the Chinese Academy of Information and Communications Technology (CAICT) has revealed that sales of foreign smartphones in the Asian giant fell by 47.4% in November compared to the same period in 2023.
The bitten apple giant launched an unusual four-day promotion in China on Thursday, reducing prices by up to 500 yuan ($68.50) on its flagship models to boost sales.
Regarding analyst recommendations, Block rises 2.4% in the pre-opening after Raymond James has raised the advice to ‘overweight’, from the previous ‘same as the market’.
In raw materials markets, oil prices are falling slightly, although they are on track to close the week higher after ending yesterday’s session at their highest level in more than two months, supported by expectations of new economic stimuli in China.
US West Texas futures fell 0.3% to $72.90 per barrel, while European benchmark Brent fell 0.33% to $75.68.
The dollar remains at two-year highs given the expectations of rates for next year, although today the euro bounces 0.34% against the greenback, leaving the exchange rate at 1.0302 dollars for each single currency .