U.S. Stock Futures Decline with Dollar Dip and Treasury Yields Rising After S&P Reaches Historic Highs

U.S. stock futures were in negative territory during Tuesday's premarket hours as the dollar slipped to 106.3. This decline was accompanied by increases in Treasury yields, with the U.S. 10-year Treasury note yielding 4.21% and the two-year note yielding 4.18%. Market expectations for a 25 basis point rate cut in December rose significantly, reaching 72.5%, according to the CME Group’s FedWatch tool.

Futures	Performance (+/-)
Nasdaq 100	-0.08%
S&P 500	-0.02%
Dow Jones	-0.07%
Russell 2000	-0.11%

In premarket trading on Monday, the SPDR S&P 500 ETF Trust (SPY) saw a slight decrease of 0.01%, trading at $603.60. Meanwhile, the Invesco QQQ Trust ETF (QQQ) was down 0.09% at $514.84, according to data from Benzinga Pro.

Cues from the Last Session

The U.S. stock market closed higher on Monday, with both the S&P 500 and Nasdaq Composite reaching new highs. Among the key drivers:

• Tesla’s Stock Surge: Tesla shares jumped 3.5% after Roth MKM upgraded the stock and raised its price target.
• Super Micro’s Recovery: Shares of Super Micro Computer soared by 29% following a positive announcement from the company.
• Positive Economic Data: Recent data showed an increase in U.S. construction spending and an improvement in the ISM manufacturing PMI, exceeding expectations.
• S&P 500 Sector Performance: Most S&P 500 sectors ended lower, but communication services and consumer discretionary sectors performed well, while utilities, real estate, and financials lagged.

Index	Performance (+/-)	Value
Nasdaq Composite	0.97%	19,404
S&P 500	0.24%	6,047.15
Dow Jones	-0.29%	44,782
Russell 2000	-0.02	2,434

Analysts' Insights

Analysts are optimistic about future performance. Mark Haefele, the Chief Investment Officer at UBS Global Wealth Management, referred to the recent economic landscape as the 'Roaring 20s', characterized by robust economic growth and strong market returns. He projected that after solid years for equities in 2023 and 2024, the S&P 500 could reach 6,600 by the end of 2025, suggesting a potential upside of approximately 10% from current levels. He emphasized the expectation of further interest rate cuts, which could lower cash returns and support continued economic growth backed by healthy consumer spending and loose fiscal policies.

Ryan Detrick, Chief Market Strategist at Carson Group LLC, noted that the S&P 500 achieved its 54th all-time high in 2024, marking significant market resilience, with highs recorded in 10 out of 12 months this year.

Bob Elliott, the Chief Investment Officer at Unlimited Funds, highlighted that global central banks are adopting an easing monetary policy despite solid economic growth, which is unusual compared to past cycles. He considers this development as a potential boost for markets.

Upcoming Economic Data Releases

This week's economic calendar is packed with important data following a brief lull due to the Thanksgiving holiday:

• On Tuesday, job openings data for October will be released along with auto sales data.
• On Wednesday, November ADP employment figures are set for release.
• The S&P final U.S. services PMI for November will be available.
• On Thursday, initial jobless claims and U.S. trade deficit data for October are scheduled.
• Friday will feature reports on U.S. employment data, unemployment rates, and hourly wages.

Stocks to Watch

Several stocks are drawing attention:

• Shimmick Construction (SHIM) rose by 57.5% to $4.43 following a $45.4 million contract win.
• Super Micro Computer Inc (SMCI) gained 6.67% at $44.8 after a review by their board.
• Santi Biosciences Inc (SNTI) fell by 4.50% to $9.55 after securing private placement financing.
• Tesla Inc (TSLA) was down 1.3% to $352.44 as a court rejected Elon Musk’s pay package.
• Intel Corp (INTC) rose 0.17% to $23.97 after the announcement of CEO Pat Gelsinger's retirement.

Commodities, Bonds, and Global Markets

In commodities, crude oil futures increased by 0.91%, trading around $68.72. The Dollar Index was down 0.12% to 106.3, and Bitcoin has decreased by 0.16%, trading just over the $95,000 mark. Overall, major Asian markets closed higher, and European markets also showed a positive trend.

Stock, Dollar, Treasury