The major U.S. index futures indicate a higher opening on Monday, suggesting that stocks are poised to continue the robust upward trajectory observed in the preceding two sessions. Technology stocks are likely to maintain their upward trajectory following some of the market’s strongest performances last Thursday and Friday. Shares of Oracle are surging by 2.6 percent in pre-market trading after Wells Fargo reiterated its Overweight rating on the software giant’s stock. AI darling and market leader Nvidia is also likely to see further upside after a report indicated that the company has informed Chinese clients of its intention to begin shipping its second-most powerful AI chips to China prior to the Lunar New Year holiday in mid-February. Overall trading activity appears to be relatively muted, as the absence of significant U.S. economic data is expected to lead some traders to remain on the sidelines. Some traders might be absent from their desks as they seek to gain an early advantage ahead of the Christmas Day holiday on Thursday. On Tuesday, reports concerning durable goods orders, third quarter GDP, industrial production, and consumer confidence are expected to draw significant attention.
Equities demonstrated a robust upward movement during trading on Friday, furthering the notable recovery observed throughout Thursday’s session. The recent upward movement in the major averages has effectively mitigated the earlier weakness observed this week. The tech-heavy Nasdaq achieved new session highs as the day drew to a close, finishing up 301.26 points or 1.3 percent at 23,307.62. The S&P 500 experienced an increase of 59.74 points, representing a rise of 0.9 percent, reaching a level of 6,834.50. Concurrently, the narrower Dow advanced by 183.04 points, equivalent to a 0.4 percent gain, settling at 48,134.89. The significant upward movement has resulted in the Nasdaq and the S&P 500 achieving positive performance for the week. The Nasdaq advanced by 0.5 percent, while the S&P 500 saw a modest increase of 0.1 percent; conversely, the Dow experienced a decline of 0.7 percent.
The sustained robustness observed in the equity markets was accompanied by a notable surge in Oracle’s shares, which experienced an increase of 6.6 percent. Oracle experienced a significant increase following a memo from TikTok CEO Shou Zi Chew, which indicated that the company has consented to divest its U.S. operations to a joint venture involving Oracle and the private equity firm Silver Lake. Micron Technology’s shares demonstrated a significant upward movement, contributing to the overall market rally on Thursday, driven by quarterly results that exceeded expectations and exceptionally strong guidance. Nvidia exhibited a robust performance on the day, with the AI darling and market leader advancing by 3.9 percent. Nvidia’s progress follows a report indicating that the Trump administration has initiated a review that may lead to the initial shipments of the company’s second-most powerful AI chips to China.
In recent U.S. economic developments, the National Association of Realtors published a report indicating a slight uptick in existing home sales for the month of November. The National Association of Realtors reported that existing home sales increased by 0.5 percent to an annualized rate of 4.13 million in November, following a 1.5 percent rise to a revised rate of 4.10 million in October. Analysts had anticipated that existing home sales would increase by 1.2 percent to an annual rate of 4.15 million, up from the 4.10 million initially reported for the prior month. A separate report released by the University of Michigan indicated that consumer sentiment in the U.S. experienced a rebound in December, albeit by a margin smaller than previously estimated. The University of Michigan reported a downward revision of its consumer sentiment index for December, adjusting it to 52.9 from an initial estimate of 53.3. The index was anticipated by economists to be revised upward to 53.4. Notwithstanding the downward revision, the index remains elevated relative to the November figure of 51.0, which represented its nadir since reaching an unprecedented low of 50.0 in June 2022. Biotechnology stocks exhibited notable strength in the market, as evidenced by the NYSE Arca Biotechnology Index’s impressive increase of 3.1 percent. Semiconductor and networking stocks continued their robust upward trajectory observed on Thursday, further propelling the rise of the tech-heavy Nasdaq. Gold stocks experienced notable strength as the price of the precious metal rose, resulting in a 2.7 percent increase in the NYSE Arca Gold Bugs Index. Computer hardware, airline, and financial stocks exhibited significant upward movements, whereas a degree of weakness was apparent in the utilities and housing sectors.