Futures Rise as Chip Stocks Gain Momentum

U.S. stock index futures saw a modest increase on Monday, following a late surge experienced last week. Investors are optimistic about technology stocks, fueled by ongoing positive sentiment surrounding artificial intelligence (AI). All eyes are also directed towards essential economic data that will likely influence the future direction of U.S. monetary policy.

As of 6:16 a.m. ET (1116 GMT), futures were up by 0.51%, with the S&P 500 rising 0.82% and the Nasdaq climbing 0.10%.

Technology Sector Leads Gains

The technology sector, particularly chipmakers, was at the forefront of these gains. This boost came in response to Microsoft’s announcement of an $80 billion investment aimed at developing AI-enabled data centers. Additionally, Foxconn surpassed revenue expectations for the fourth quarter, further supporting the growth of chip stocks.

In premarket trading, shares of Nvidia jumped 2%, while other chip manufacturers like Advanced Micro Devices, Micron Technology, and Broadcom saw their shares rise between 1.3% and 3.4%.

Market Recovery After Losses

The market experienced a strong rebound on Friday after facing several losses in December and early January. Concerns over high valuations, increasing Treasury yields, and thin trading liquidity had previously prompted traders to retreat after a solid performance in 2024.

This week is packed with economic reports and speeches from officials within the Federal Reserve. Investors are keenly anticipating insights regarding the timeline for potential monetary policy easing.

Particularly anticipated is the jobs report set to release on Friday, which is expected to indicate that U.S. job growth slowed in December compared to November. The unemployment rate is predicted to hold steady at 4.2%.

Political Context and Stock Movements

Looking beyond immediate market trends, U.S. President-elect Donald Trump is scheduled to take the oath of office on January 20. His proposals, which include reducing corporate taxes, loosening regulations, and imposing tariffs, could stimulate corporate profits and invigorate the economy. However, these measures may also risk pushing inflation higher.

In individual stock movements, shares of Lyft surged about 5% after Benchmark upgraded the ride-hailing company’s stock rating from “hold” to “buy.”

futures, chip, stocks