U.S. Stocks Set to Open Higher as Market Focuses on Nvidia and Robotics Stocks Ahead of CES 2025

U.S. stock futures saw an upward trend on Monday, putting an end to their recent losses from Friday. Premarket trading indicated gains across all four major stock indices.

This week involves a shortened trading schedule, with the U.S. stock markets closing on Thursday, January 9, in observance of former President Jimmy Carter's "National Day of Mourning."

The yields on the 10-year and two-year Treasury notes stood at 4.61% and 4.27%, respectively. Data from the CME Group’s FedWatch tool indicated a 90.9% chance that the interest rates would remain unchanged during the upcoming decision on January 31, 2025.

Futures	Change (+/-)
Nasdaq 100	0.70%
S&P 500	0.42%
Dow Jones	0.04%
Russell 2000	0.10%

In Monday's premarket trading, the SPDR S&P 500 ETF Trust (SPY) saw an increase of 0.42%, reaching $594.44, while the Invesco QQQ Trust ETF (QQQ) rose by 0.74% to $522.40, based on data from Benzinga Pro.

Market Insights

After experiencing a five-day slide, the longest such streak since April, Wall Street bounced back on Friday. Investor sentiment improved, which catalyzed significant activity in the markets. All major indices reported positive returns, with the Nasdaq 100 leading the upward movement. This strong performance was reflected across all sectors of the S&P 500.

Moreover, the latest ISM Manufacturing PMI data exceeded projections, showcasing a more robust manufacturing sector in December. This marks the second consecutive month of expansion in the manufacturing field.

U.S. automakers saw notable movements in their stock prices following the announcement of their fourth-quarter delivery figures, with the consumer discretionary sector outperforming consumer staples.

Index	Performance (+/-)	Value
Nasdaq Composite	1.77%	19,621.68
S&P 500	1.26%	5,942.47
Dow Jones	0.80%	42,732.13
Russell 2000	1.72%	2,268.47

Analyst Comments

Ryan Detrick, chief market strategist at Carson Research, noted in a post on X that historically, stocks tend to perform well in years where there is a decline on the first or last trading day of the year. He pointed out that this pattern has repeated over the past three years and led to positive outcomes in 2023 and 2024.

The upcoming week is packed with key labor market data for November and December. Ed Yardeni from Yardeni Research expressed optimism, believing that businesses will likely exceed expectations in creating jobs and raising wages, especially if corporate profits continue to reach new heights.

Yardeni also mentioned that the fourth-quarter earnings reporting season will kick off soon, led by major banks. He suggested that these companies may highlight how AI could enhance their productivity, with many striving to convince investors that they are becoming technology firms either developing or utilizing AI technologies.

Additionally, Louis Navellier of Navellier and Associates commented that stock valuations are grounded in solid earnings expectations, especially for tech giants, which continue to show immense cash generation, largely unaffected by current interest rate levels. He emphasized the tangible benefits of AI in boosting productivity, although it might result in significant job reductions in some sectors.

Key Economic Data Ahead

This week will feature several crucial data releases that could influence the market direction:

• On Monday, S&P’s final U.S. services PMI for December will be released at 9:45 a.m. ET.
• November's factory orders data will follow at 10:00 a.m. ET.
• On Tuesday, Richmond Fed President Tom Barkin will address the public at 8:00 a.m. ET.
• U.S. trade deficit figures for November will also be available at 8:30 a.m. ET.
• Data regarding ISM services for December and job openings for November will be out at 10:00 a.m. ET.
• On Wednesday, December’s ADP employment data will be reported at 8:15 a.m. ET.
• The minutes from the Fed’s December FOMC meeting will be published at 2:00 p.m. ET.
• Consumer credit data for December will be provided at 3:00 p.m. ET.
• On Thursday, initial jobless claims for the week ending January 4 will be released at 8:30 a.m. ET.
• Wholesale inventories for November will follow at 10:00 a.m. ET.
• Finally, on Friday, the U.S. employment report, along with the unemployment rate and hourly wages for December, will be published at 8:30 a.m. ET.
• The preliminary consumer sentiment for January will be reported at 10:00 a.m. ET.

Stocks to Watch

• Nvidia Corp. (NVDA) saw a premarket rise of 1.87% as anticipation grew for a keynote speech from CEO Jensen Huang during Monday night’s CES 2025. His address could significantly impact the semiconductor and AI chip market.
• Robotics companies are also experiencing positive momentum, with Arbe Robotics Ltd. (ARBE) up 16.73%, alongside others like Nauticus Robotics Inc. (KITT) gaining 95.26%, Richtech Robotics Inc. (RR) at 30.81%, and Microbot Medical Inc. (MBOT) increasing by 58.81% ahead of CES 2025.
• Plug Power (PLUG) also jumped by 7.98% following a government announcement that some nuclear power plants could qualify for tax credits when producing clean hydrogen.
• Both General Motors (GM) and Ford Motor Co. (F) were up by 1.26% and 1.42%, respectively, after posting solid sales figures for 2024, with a notable increase of over 4% in annual sales, the highest since 2019.
• Cerence Inc. (CRNC) experienced a strong rise of 20.43% following news of an extended partnership with Nvidia, which is expected to enhance their automotive language models.

Commodities and Global Markets

In commodities, crude oil futures were slightly down by 0.04% during the early session, trading around $73.93 per barrel. Meanwhile, gold spot prices fell by 0.37%, settling at $2,644.81 per ounce. The Dollar Index also saw a decline of 0.32%, trading at 108.606.

In global markets, Asian indices were largely in the red, with declines observed in Hong Kong’s Hang Seng, Japan’s Nikkei 225, India's S&P BSE Sensex, and China’s CSI 300. Conversely, Australia's ASX 200 and South Korea’s Kospi ended on a positive note. European markets displayed a mixed performance.

Stocks, Market, Nvidia, Robotics, Economy