U.S. stocks could open on a positive note on Tuesday after Donald Trump's inauguration as the 47th President of the U.S. on Monday.
Futures point to a positive start to the Trump presidency amid a cloud of tariff threats against other countries and a slew of executive orders. These include Trump revoking President Biden's EV mandate, refocusing on energy, and ordering the government's employee base to be reduced.
| Futures | Change (+/-) |
| Nasdaq 100 | 0.46% |
| S&P 500 | 0.40% |
| Dow Jones | 0.37% |
| R2K | 0.68% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) gained 0.45% to $600.24 and the Invesco QQQ ETF (NASDAQ:QQQ) rose 0.50% to $524.35, according to Benzinga Pro data.
Cues From Last Session:
U.S. stocks ended Friday on a positive note, with the Nasdaq and S&P 500 ending the day with major gains, while the Dow Jones closed 0.78% in the green.
Crude oil prices edged lower as traders await clarity about the new Trump administration's agenda.
Tesla Inc. (NASDAQ:TSLA) and Nvidia Corp. (NASDAQ:NVDA) were among the top gainers on Friday, surging 3% during the session.
On the economic data front, U.S. industrial production rose by 0.9% in December, topping market estimates of a 0.3% increase. Housing starts rose by 15.8% from the previous month to an annualized rate of 1.499 million units in December.
Most sectors on the S&P 500 closed on a positive note, with consumer discretionary, information technology, and communication services stocks recording gains on Friday.
However, healthcare and real estate stocks bucked the overall market trend, closing the session lower.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 1.51% | 19,630.20 |
| S&P 500 | 1.00% | 5,996.66 |
| Dow Jones | 0.78% | 43,487.83 |
| Russell 2000 | 0.40% | 2,275.88 |
Insights From Analysts:
Analysts at JPMorgan sounded optimistic about the earnings growth prospects of U.S. companies over their European rivals, but the reason for this is slightly different.
According to JPMorgan strategist Mislav Matejka, the optimism stems from the fact that projections for the U.S. benchmark were "meaningfully" reduced despite a strong economy, according to a report by Bloomberg.
On the other hand, expectations were "more punchy" for European stocks, which could be challenging for companies to meet.
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Upcoming Economic Data
While there are no economic events scheduled for Tuesday, here's what investors will keep an eye on for the rest of the week:
- On Wednesday, leading economic indicator data will be released at 10:00 a.m., ET.
- On Thursday, initial jobless claims data will be released at 8:30 a.m. ET.
- On Friday, S&P flash services PMI and manufacturing PMI will be released at 9:45 a.m. ET.
- Existing home sales and consumer sentiment data will be released at 10 a.m., ET.
Stocks In Focus:
- Auto stocks like Tesla Inc. (NASDAQ:TSLA), Rivian Automotive Inc. (NASDAQ:RIVN), General Motors Co. (NYSE:GM), Ford Motor Co. (NYSE:F), and Lucid Group (NASDAQ:LCID), among others, will be in focus on Tuesday.
- Nvidia Corp. (NASDAQ:NVDA) gained 3.10% in pre-market trading President Trump revoked the Biden administration's AI order.
- Apple Inc. (NASDAQ:AAPL) stock fell nearly 2% after a rare downgrade from Jefferies, citing slowing revenue growth and iPhone demand.
- Intel Corp. (NASDAQ:INTC) continued to soar amid reports of the chipmaker being the target of an acquisition bid.
- Netflix Inc. (NASDAQ:NFLX) edged up by 0.8% ahead of its earnings scheduled for later today.
- Trump Media & Technology (NASDAQ:DJT) shares fell more than 7% in pre-market after President Trump's inauguration.
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell in the early New York session, declining by 2.5% to hover around $75.30 per barrel.
The 10-year Treasury note yield edged lower to 4.587%.
Most of the major Asian markets were mixed on Tuesday, while European markets were in the red in early trading.
Read Next:
- DJT Stock Drops 3% In Tuesday Premarket, A Day After Inauguration — Key Details About Trump’s Media Company
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