How Stock Index Futures Trade:
S&P 500 futures are up 0.5%.
Dow Jones Industrial Average futures rise 0.4%.
Nasdaq 100 futures gain 0.5%.
FridayThe Dow Jones Industrial Average rose 335 points, or 0.78%, to 43,488, the S&P 500 rose 59 points, or 1%, to 5,997, and the Nasdaq Composite gained 292 points, or 1. 51%, to 19,630.
The markets are returning from the long weekend in an optimistic mood.
Fears that Donald Trump would immediately impose a series of tariffs on US imports proved unwarranted as the 47th president failed to keep his promise – instead hinting later on Monday at possible customs duties on Canada and Mexico at the beginning of February.
The lack of tariffs – which many investors fear are inflationary – has triggered a rally in Treasuries, lowering yields and providing further support to stock index futures.
“The overall market reaction has been muted to the new president’s series of executive orders, even providing some relief in the absence of the expected immediate announcements on tariffs,” said Richard Hunter, head of markets at Interactive Investor.
“Of course, the real tests lie ahead when the potentially inflationary impacts of any tax cuts, less regulation and immigration policies become known, while the generally business-friendly agenda could work in investors’ favor As evidenced by the president’s first term, “one outcome that seems inevitable is an increase in volatility, given the scale and speed with which measures could be introduced,” Hunter added.
Meanwhile, investors will keep an eye on the rest of the fourth-quarter 2024 earnings season, with Netflix as the highlight after the closing bell.
