US Stock Futures Dip As Dollar Slides And Treasuries Rise After S&P Hits 54th All-Time High This Year: Analyst Sees 'Further Upside' Of Around 10% In 2025 From Current Levels
U.S. stock futures were in negative territory during Tuesday’s premarket hours as the dollar slipped to 106.3 level.
The U.S. 10-year and two-year Treasury notes yielded 4.21% and 4.18%, respectively. Expectations of a further 25 basis point rate cut in December rose to 72.5%, according to CME Group’s FedWatch tool.
| Futures | Performance (+/-) |
| Nasdaq 100 | -0.08% |
| S&P 500 | -0.02% |
| Dow Jones | -0.07% |
| Russel 2000 | -0.11% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) was down 0.01% to $603.60 and the Invesco QQQ Trust ETF (NASDAQ:QQQ) fell 0.09% to $514.84, according to Benzinga Pro data.
Cues From The Last Session
The U.S. stock market closed higher on Monday, with the S&P 500 and Nasdaq Composite reaching new highs.
Key Drivers:
- Tesla Boost: Tesla shares surged 3.5% after Roth MKM upgraded the stock and raised its price target.
- Super Micro Rebound: Super Micro Computer stock jumped 29% following a positive company announcement.
- Economic Data: U.S. construction spending increased and the ISM manufacturing PMI rose, beating expectations.
- Sector Performance: While most S&P 500 sectors closed lower, communication services and consumer discretionary stocks outperformed. 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 |
| Russel 2000 | -0.02 | 2,434 |
Insights From Analysts:
Chief investment officer at UBS Global Wealth Management, Mark Haefele termed the decade so far as the “Roaring 20s,” marked by high economic growth, strong market returns, and improving productivity.
In his ‘UBS Year Ahead 2025 Report‘ he said "After strong years for equities in 2023 and 2024, we see further upside in 2025. We expect the S&P 500 to reach 6,600 by the end of 2025, around 10% higher than today’s levels."
"We expect central banks to cut interest rates further in the year ahead, reducing cash returns," Haefele added.
Highlighting his economic outlook he said, "In our base case, we expect sustained economic growth in the U.S., supported by healthy consumption, loose fiscal policy, and lower interest rates. Tariff threats are a headwind for Asia and Europe. If imposed, they could be partially offset by reactive stimulus measures in China."
Chief market strategist at Carson Group LLC, Ryan Detrick highlighted that “With a new high in December, we’ve seen new highs in 10 out of 12 months this year (April and August didn’t).”
Unrelated to past cycles, global central banks are easing monetary policy despite strong economic growth, high asset prices, and elevated inflation, said Bob Elliott, the chief investment officer at Unlimited Funds. Elliott presented the underlying data reiterating these conditions in a thread on X, indicating a positive sign for the markets.
Upcoming Economic Data
This week’s economic calendar is packed after a short last week due to Thanksgiving.
- On Tuesday, job openings data for October will be released at 10:00 a.m. ET and auto sales data will be released for which the time is yet to be determined.
- On Wednesday, November’s data on ADP employment will be released at 8:15 a.m. ET.
- St. Louis Fed President Musalem will speak at 8:45 a.m. ET.
- The S&P final U.S. services PMI for November will be released at 9:45 a.m. ET.
- The ISM services and factory orders data for November and October, respectively, will be released at 10:00 a.m. ET.
- Fed Beige Book will be released at 2:00 p.m. ET.
- On Thursday, initial jobless claims data for November and U.S. trade deficit data for October will be released at 8:30 a.m. ET.
- On Friday, the U.S. employment report, U.S. unemployment rate, and U.S. hourly wages data will be released at 8:30 a.m. ET.
- The preliminary data for consumer sentiment will be released at 10 a.m. ET.
- Chicago Fed President Goolsbee will speak at 10:30 a.m., ET.
- Consumer credit data will be released at 3:00 p.m. ET.
Stocks In Focus:
- Shimmick Construction (NASDAQ:SHIM) was 57.5% higher at $4.43 apiece in premarket after it landed a $45.4 million contract to build the Murray Street Bridge in Santa Cruz.
- Super Micro Computer Inc (NASDAQ:SMCI) was 6.67% up at $44.8 per share after it announced that the independent Special Committee formed by the company’s board completed its review.
- Santi Biosciences Inc (NASDAQ:SNTI) shares were 4.50% down at $9.55 apiece after it secured a $37.6 million private placement financing through the sale of 16,713 shares of Series A Convertible Preferred Stock.
- Tesla Inc (NASDAQ:TSLA) shares were down 1.3% to $352.44 apiece after Elon Musk’s pay package was rejected again by a Delaware judge despite being approved by Tesla shareholders at a June meeting.
- Intel Corp (NASDAQ:INTC) was up 0.17% at $23.97 per share after the retirement announcement of its chief executive officer, Pat Gelsinger.
Commodities, Bonds And Global Equity Markets:
Crude oil futures rose in the early New York session, advancing 0.91% to hover around $68.72.
The Dollar Index was down 0.12% to 106.3 level. Bitcoin (CRYPTO: BTC) was down 0.16% over the past 24 hours and traded just over the $95K mark.
Major Asian markets closed higher on Tuesday. European markets were also upbeat.
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