Market Sentiment Remains Cautious Ahead of Key Economic Data
As investors digest the latest developments in the tech sector and await clarity on trade policies, US stock futures are holding steady. The S&P 500 futures are up 0.1%, building on the previous session’s tech-driven gains. Meanwhile, Dow Jones Industrial Average futures have inched 0.2% higher, and Nasdaq 100 futures are hovering around the flatline.
Nvidia’s AI Ambitions Provide a Bright Spot
Nvidia CEO Jensen Huang’s keynote at CES has injected some much-needed optimism into the market. The company’s shares have surged over 2% in pre-market trading, following a record high close, after Huang unveiled a new AI superchip and other innovative products. This has sparked a rally in chip stocks, with Micron Technology up over 5% and Asian names making gains.
Tariff Uncertainty Weighs on Markets
However, the uncertainty surrounding Donald Trump’s tariff agenda continues to cast a shadow over the market. Despite the president-elect’s denial of a Washington Post report suggesting more targeted measures, investors remain cautious. The dollar has fallen to one-week lows, reflecting the ongoing uncertainty.
Jobs Data Takes Center Stage
Later today, the JOLTS job openings report for November will provide valuable insights into the labor market. This data will not only influence the debate around interest rates but also set the stage for Friday’s crucial December jobs report. Recent comments from Fed officials suggest a more gradual approach to rate cuts, given the resilience of the jobs market and persistent inflation.
Services Activity Report Also on Tap
In addition to the jobs data, a reading on US services activity is scheduled for release today. This will provide further clues about the state of the economy and help shape market expectations. As investors navigate the complex landscape of policy uncertainty and economic data, one thing is clear: caution remains the order of the day.
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