US stock futures popped on Monday as chip stocks shone, while investors waited for the release of the key monthly jobs report later in the week.
Contracts on the Nasdaq 100 (NQ=F) surged over 1%, while S&P 500 futures (ES=F) jumped roughly 0.8%, poised to build on Friday’s tech-led rally. Dow Jones Industrial Average futures (YM=F) rose 0.4%.
The upbeat mood kicks off the first full week of 2025 for traders, highlighted by the release of the December nonfarm payrolls report on Friday. But it’s another shortened week, as stock markets shutter on Thursday to mourn the death of former President Jimmy Carter.
Chip stocks are rallying after a record revenue and a strong sales forecast from Nvidia (NVDA) server partner Foxconn (2317.TW, HNHPF), which boosted optimism for AI-fueled growth. Shares of Nvidia and peer AMD (AMD) rose over 2% in pre-market trading, while Micron Technology (MU) put on around 5%.
Focus stays on Nvidia later Monday when CEO Jensen Huang gives the keynote speech to start the CES tech conference. Investors will listen for signs its new Blackwell chip has shaken off supply glitches.
Meanwhile, the benchmark 10-year Treasury yield (^TNX) erased an earlier gain to trade around 4.59% after the Washington Post reported that Donald Trump’s team is exploring more limited tariffs than anticipated. The dollar (DX=F) dropped sharply as markets recalculated the potential inflationary impact of the president-elect’s plans.
On the corporate front, Disney (DIS) is closing in on a deal with Fubo to merge its Hulu live TV business into Fubo’s service, Bloomberg reported. Shares in Disney were little changed in early morning trade.
LIVE 2 updates
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Good morning. Here’s what’s happening today.
Earnings: None of note
Economic news: S&P Global US manufacturing and composite PMIs (December final); factory orders, durable goods orders (November final)
Catch up on stories you may have missed:
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Trump’s revised tariff plans push stock futures higher
The first full week of trading in 2025 was set to begin with US stocks higher after a report from The Washington Post suggested a softening in Trump’s tariff plans could be coming as his administration takes power this month.
As The Post’s Jeff Stein reports: “[Trump’s] aides are still discussing plans to impose import duties on goods from every country, the people said. But rather than apply tariffs to all imports, the current discussions center on imposing them only on certain sectors deemed critical to national or economic security…”
After his election win in the fall, Trump pledged to impose a blanket tariff of up to 20% on all imports — from all trading partners — with even stiffer levies targeted at some countries, like Mexico, Canada, and China.
The stock market’s shaky finish to 2024 was, in part, attributable to the uncertainty of these policies and Trump’s broader economic agenda heading into 2025.
Last month, the Fed revised its outlook for rate cuts in 2025, with Chair Jay Powell saying during a press conference the impact of Trump’s tariffs during his first administration — which prompted a more aggressive interest rate hiking cycle and a market sell-off in 2018 — were “a good starting point” for thinking about Trump 2.0.
Ahead of Monday’s open, futures on the tech-heavy Nasdaq were up about 1% while S&P 500 futures rose 0.8%. Dow futures were up closer to 0.4%.
The dollar index, which has traded to two-year highs since Trump’s election win, was off about 1% early Monday.
