Written by Lisa Pauline Matakkal and Purvi Agarwal
(Reuters) – U.S. stock index futures rose on Monday, extending post-election gains as investors awaited the next economic data that could determine whether stock gains can be sustained.
Several stocks that rose in response to the US election results continued their upward trajectory. EV maker Tesla soared 6.5% in pre-market trading on Friday after reaching a market capitalization of $1 trillion for the first time since 2022.
Futures tracking the small-cap Russell 2000 index rose 1.3%, still at its highest level since November, with the sector largely buoyed by expectations for President-elect Donald Trump's proposed tax cuts and loosening of regulations. expected to benefit.
Last week, major indexes soared as President Trump took back the White House, and the benchmark S&P 500 index had its best week of the year, briefly topping the 6,000 mark on Friday.
On Friday, the Dow reached 44,000 points for the first time, its best week in more than a year.
Cryptocurrency stocks rose on Monday as Bitcoin soared above $81,000. Coinbase Global rose 16.3%, while Bitcoin miners Mara Holdings and Riot Platforms rose 19.4% and 13.4%, respectively.
“Bitcoin wasn’t just boosted by the incoming White House inductee, but also by the price winnings of candidates with a positive attitude towards the asset class,” said Russ Mould, investment director at AJ Bell. .
The Dow E-mini rose 185 points (0.42%), the S&P 500 E-mini rose 17.75 points (0.29%) and the Nasdaq 100 E-mini rose 56 points (0.26%).
The benchmark index is already up 25% since the start of the year, with stocks on solid ground as the year draws to a close, with enthusiasm for AI and the Fed's start to cut interest rates supporting a positive outlook.
The focus will be on Wednesday's consumer price inflation data, as well as a number of other key data releases this week that will further hint at the health of the economy and the outlook for interest rates.
Analysts at SEB Research said, “The stock market is focused on the actual and projected U.S. economic growth.''
“President Trump is expected to continue evaluating his political actions against trends in the U.S. stock market, but he is already receiving significant feedback from investors about the pro-growth economic policies he has designed for the United States. We have received clear and largely positive confirmation.”
The US Federal Reserve (Fed) cut interest rates by 25 basis points (bp) last week as expected, but investors see a 68.5% chance of doing the same at its December meeting, according to CME FedWatch. There is.
