US Stocks Set to Rise Ahead of Truncated Week with Nvidia and Robotics Focus

U.S. stock futures showed positive movement on Monday following an end to a recent losing streak on Friday. Futures for all four major indices were up in premarket trading.

This upcoming week is another shortened trading week as U.S. stock markets will be closed on Thursday, January 9, in observance of former President Jimmy Carter's "National Day of Mourning."

The yields on the 10-year and two-year Treasury notes were reported at 4.61% and 4.27%, respectively. Predictions indicate a 90.9% likelihood of no changes to interest rates in the upcoming decision scheduled for January 31, 2025, according to the CME Group’s FedWatch tool.

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

In premarket trading on Monday, the SPDR S&P 500 ETF Trust (SPY) increased by 0.42%, reaching a price of $594.44, while the Invesco QQQ Trust ETF (QQQ) rose by 0.74% to $522.40, as per data from Benzinga Pro.

Cues From the Last Trading Day

After experiencing a five-day decline, the longest losing stretch since April, Wall Street rebounded strongly on Friday. Investor confidence surged, contributing to increased market activity. All major indices recorded positive returns, with the Nasdaq 100 leading the surge. This positive trend was reflected across all sectors of the S&P 500.

Additionally, the latest ISM Manufacturing PMI exceeded expectations, showcasing a stronger manufacturing sector in December. This marks the second consecutive month of manufacturing expansion.

U.S. automakers saw significant stock price movement following the announcement of fourth-quarter delivery figures. In particular, the consumer discretionary sector outperformed its consumer staples counterpart.

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

Market Insights and Economic Outlook

Ryan Detrick, chief market strategist at Carson Research, noted that historical trends show that stock returns tend to be higher in years when markets decline on the first or last day of the year. He mentioned in a recent post that this has occurred in the last three years, and both 2023 and 2024 have seen favorable outcomes.

The upcoming week promises a range of labor market indicators for November and December. Ed Yardeni of Yardeni Research expressed his expectation that these indicators will surpass forecasts. He emphasized that as corporate earnings reach new highs, more jobs are likely to be created, leading to higher wages.

According to Yardeni, the fourth-quarter earnings reporting season is about to kick off, beginning with large banks. He anticipates discussions around how AI is boosting corporate productivity, suggesting that every company is beginning to embrace technology, specifically through AI.

Louis Navellier from Navellier and Associates commented on earnings prospects, asserting that they remain solid and that tech giants continue to produce significant cash flows, with minimal impact from interest rates. He also highlighted the substantial potential of AI in enhancing productivity, although it may result in a reduced workforce to sustain operations.

Upcoming Economic Data Releases

This week will feature several key economic data points that will guide investors in making future market assessments.

• On Monday, S&P’s final U.S. services PMI for December will be revealed at 9:45 a.m. ET.
• November's factory orders data will be disclosed at 10:00 a.m. ET.
• On Tuesday, Richmond Fed President Tom Barkin is set to speak at 8:00 a.m. ET.
• The U.S. trade deficit data for November will be reported at 8:30 a.m. ET.
• ISM services data and job openings for November will be announced at 10:00 a.m. ET.
• On Wednesday, ADP employment data for December will be available at 8:15 a.m. ET.
• The minutes from the Fed’s December FOMC meeting will be released at 2:00 p.m. ET.
• Consumer credit data for December will follow at 3:00 p.m. ET.
• On Thursday, initial jobless claims for the week ending January 4 will be published at 8:30 a.m. ET.
• Wholesale inventories for November will be released at 10:00 a.m. ET.
• Finally, on Friday, the U.S. employment report, including unemployment rates and hourly wages for December, will be shared at 8:30 a.m. ET, alongside preliminary consumer sentiment data for January at 10:00 a.m. ET.

Stocks in the Spotlight

Several notable stocks are making headlines ahead of the CES 2025 event:

• Nvidia Corp. (NVDA) saw its stock rise by 1.87% in premarket trading as Wall Street anticipates a keynote address from CEO Jensen Huang on Monday night at CES 2025, which is expected to be significant for the semiconductor and AI chip industries.
• Robotics stocks performed impressively, with Nauticus Robotics Inc. (KITT) up 95.26%, Richtech Robotics Inc. (RR) up 30.81%, Microbot Medical Inc. (MBOT) up 58.81%, and Arbe Robotics Ltd. (ARBE) increasing by 16.73% ahead of CES 2025.
• Plug Power (PLUG) rose by 7.98% following news from the Biden administration regarding new rules that permit certain nuclear power plants to qualify for tax credits when generating clean hydrogen.
• General Motors (GM) was up 1.26%, while Ford Motor Co. (F) surged by 1.42% after announcing strong sales figures for 2024, with growth exceeding 4%—the highest sales figures for both in years.
• Cerence Inc. (CRNC) increased by 20.43% after announcing a partnership extension with Nvidia which is expected to enhance their upcoming family of CaLLM language models, including their cloud-based automotive language model.

Commodities and Global Markets

In the commodities market, crude oil futures experienced a slight decline of 0.04%, trading around $73.93 per barrel. The gold spot index also fell by 0.37%, reaching $2,644.81 per ounce, and the Dollar Index dropped 0.32% to 108.606.

Asian markets mostly declined on Monday, with Hong Kong’s Hang Seng, Japan’s Nikkei 225, India’s S&P BSE Sensex, and China’s CSI 300 index all showing losses. Conversely, Australia’s ASX 200 and South Korea’s Kospi managed to end the day higher. European markets showed mixed results.

Stocks, Market, Earnings