Lucas MartinezUS stock futures inched upward on Friday, setting the stage for a potential recovery after a rocky start to the year. Anticipation built as investors awaited new manufacturing data while Tesla (TSLA) struggled to regain its footing. S&P 500 futures saw a 0.2% increase, mirrored by similar upward moves in the Dow Jones Industrial Average. Nasdaq 100 futures edged up by 0.3%.
Market watchers nervously eyed the S&P 500 on the last opportunity for a “Santa Claus” rally—an event historically linked with strong January performances. However, optimism was tempered after yesterday’s losses stretched the index’s losing streak to five days, the longest since April. Heading into the weekend, both the S&P 500 and the Dow seemed set to conclude the shortened week with a loss exceeding 1%, with the Nasdaq on track for a nearly 2% downturn.
Tesla’s shares vacillated, negating earlier pre-market gains, despite setting a new sales record in China for 2024. Yet, global sales figures dipped, dragging Tesla’s stock down by 6% on Thursday.
In other news, US Steel shares plunged nearly 8% following reports that President Biden intends to block a $14.9 billion takeover by Japan’s Nippon Steel, citing significant political opposition.
Investors keenly awaited the day’s economic report on US manufacturing, which could shed light on whether the Federal Reserve will remain cautious about cutting interest rates. Meanwhile, JP Morgan received a boost with an upgrade, sparking optimism as its shares ticked up by about 1% in pre-market trading.
US Stock Market Potentially Rebounds Amid Mixed Economic Signals
In a hopeful turn for investors, US stock futures showed upward momentum on Friday following a tumultuous beginning to the year. Economic watchers are poised for insights from new manufacturing data, which may illuminate the Federal Reserve’s prospective actions on interest rates. Notably, S&P 500 futures reported a 0.2% rise, accompanied by increases in both the Dow Jones Industrial Average and Nasdaq 100 futures.
The end of the week drew attention as market analysts speculated on the potential for a “Santa Claus” rally — a historically significant time for strong January market performances. However, lingering concerns persisted after recent losses extended the S&P 500 index’s losing streak to the longest seen since April. As the trading week concluded, the S&P 500 and Dow Jones remained on track for losses exceeding 1%, while the Nasdaq faced a nearly 2% decline.
Tesla (TSLA) shares experienced volatility, negating pre-market gains despite achieving a new sales record in China for 2024. The positive news was overshadowed by a decline in global sales figures, leading to a 6% drop in its stock on Thursday.
In corporate developments, US Steel’s shares fell nearly 8% amid reports of President Biden’s intention to block a $14.9 billion acquisition by Japan’s Nippon Steel due to political concerns.
The economic community remained watchful for the upcoming US manufacturing report, which could provide clarity on the Federal Reserve’s stance regarding potential interest rate cuts. Meanwhile, optimism was sparked for JP Morgan as their shares experienced a 1% increase in pre-market trading following an upgrade.
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