Market Optimism Soars as Tech Stocks Take Center Stage
The first full week of 2025 is off to a strong start, with US stock futures surging on Monday. The tech sector is leading the charge, driven by a record revenue and strong sales forecast from Foxconn, a key partner of Nvidia. This has boosted optimism for AI-fueled growth, sending chip stocks rallying.
Chip Stocks Shine Bright
Nvidia shares rose 2% in pre-market trading, while peers AMD and Micron Technology each gained over 3%. The upbeat mood is expected to continue, with Nvidia CEO Jensen Huang set to deliver the keynote speech at the CES tech conference later Monday. Investors will be listening closely for signs that the company’s new Blackwell chip has overcome supply glitches.
Economic Data Takes Center Stage
This week’s economic calendar is highlighted by the release of the December nonfarm-payrolls report on Friday. However, the shortened week, with stock markets closing on Thursday to mourn the death of former President Jimmy Carter, may impact trading volumes. Other key data releases include S&P Global US manufacturing and composite PMIs, as well as factory orders and durable goods orders.
Tariff Uncertainty Eases
A report from The Washington Post suggests that Trump’s administration may be softening its stance on tariffs, which could provide a boost to the market. According to the report, the administration is considering imposing tariffs only on certain sectors deemed critical to national or economic security, rather than a blanket tariff on all imports. This shift in policy could help alleviate some of the uncertainty that has plagued the market since Trump’s election win.
Fed Watch
The Federal Reserve’s revised outlook for rate cuts in 2025 will also be closely watched. Chair Jay Powell has indicated that the impact of Trump’s tariffs during his first administration will be a key consideration in the Fed’s decision-making process.
Market Outlook
As the week gets underway, futures on the tech-heavy Nasdaq are up about 1%, while S&P 500 futures have risen 0.8%. Dow futures are up closer to 0.4%. The dollar index, which has traded to two-year highs since Trump’s election win, is off about 1% early Monday. With the CES tech conference and key economic data releases on the horizon, investors will be closely watching for signs of continued growth and stability in the market.
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