The major U.S. index futures indicate a slight decline at the open on Tuesday, suggesting that stocks may retrace some of the gains achieved in recent sessions. Market participants might seek to capitalize on the recent robustness observed in the markets, which experienced a significant rebound in the major averages following a decline earlier last week. Tech stocks such as Oracle, Nvidia, and Micron Technology contributed to the recovery but are now trending downward in pre-market trading. The futures declined slightly after the Commerce Department released a report indicating that the U.S. economy expanded significantly more than anticipated in the third quarter of 2025.
The Commerce Department reported that real gross domestic product increased by 4.3 percent in the third quarter, following a rise of 3.8 percent in the second quarter. Analysts had anticipated GDP to increase by 3.3 percent. The unexpectedly robust economic growth could generate renewed uncertainty regarding the trajectory of interest rates. In a recent report, the Commerce Department indicated that new orders for U.S. manufactured durable goods experienced a decline greater than anticipated in October. Building on the robust upward momentum observed in the preceding two sessions, equities predominantly advanced during Monday’s trading activity. The major averages experienced an upward movement on the day, contrasting with the mixed performance observed in the preceding week.
The major averages concluded the day below their session peaks, yet remained solidly in positive territory. The Dow increased by 227.79 points, representing a 0.5 percent rise, reaching a level of 48,362.68. The Nasdaq experienced a gain of 121.21 points, also a 0.5 percent increase, bringing it to 23,428.83. Meanwhile, the S&P 500 saw an advancement of 43.99 points, equivalent to a 0.6 percent increase, resulting in a total of 6,878.49. The markets sustained their upward momentum, driven by robust performance in technology stocks, which played a pivotal role in propelling gains last Thursday and Friday. Shares of Oracle surged by 3.3 percent following Wells Fargo’s reaffirmation of its Overweight rating on the software giant’s stock. AI darling and market leader Nvidia also saw further upside after a report has informed Chinese clients of its intention to begin shipping its second-most powerful AI chips to China ahead of the Lunar New Year holiday in mid-February.
Overall trading activity seemed relatively muted, as the absence of significant U.S. economic data led 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. Gold stocks experienced considerable strength as the price of the precious metal surged to unprecedented levels, propelling the NYSE Arca Gold Bugs Index to a 3.3 percent increase, culminating in a record closing high. Significant strength was also visible among airline stocks, as reflected by the 1.7 percent gain posted by the airline index. Steel, networking, and telecom stocks exhibited significant strength, advancing in tandem with the majority of other key sectors.