Investing.com – U.S. stock index futures rose on Friday, signaling a rebound from a negative start to the year on Wall Street that featured a decline in electric vehicle group Tesla (NASDAQ:) stock. Investors are looking forward to the release of factory activity data outside the United States, which could provide a glimpse into the state of major manufacturing industries as President-elect Donald Trump takes office. The Washington Post also reported that current US President Joe Biden is expected to block US Steel's sale to Nippon Steel.
1. Futures price
U.S. stock futures edged higher on Friday as traders said in pre-market trading that the start of trading in 2025 looks unlikely.
By 3:19 a.m. ET, the contract was up 85 points, or 0.2%, up 19 points, or 0.3%, and up 97 points, or 0.5%.
Wall Street's major indexes fell Thursday to open trading for the new year. 30 stocks fell 152 points or 0.4%, the benchmark fell 13 points or 0.2% and tech stocks fell 30 points or 0.2%.
Stocks weighed on Tesla shares, which fell more than 6% after the electric car manufacturer reported its first annual sales decline despite steep price cuts and promotional efforts aimed at stimulating demand. It fell.
Meanwhile, both new and continuing claims for unemployment benefits in the U.S. fell last week, according to Labor Department data. The report strengthened some expectations that the US Federal Reserve (Fed) will choose to keep interest rates unchanged at its next policy meeting this month.
2. ISM Manufacturing PMI takes the lead
On a relatively quiet day for economic data, investors will have an opportunity to analyze December US factory activity statistics.
Last month's index was 48.2, which is expected to decline slightly from the five-month high of 48.4 in November. A reading below 50 typically indicates a contraction in an industry that accounts for more than 10% of the U.S. economy.
This is the eighth month in a row that the index has fallen below the 50-point threshold, but remains above the 42.5 level, which ISM says indicates broad economic expansion.
The market will likely be watching to see whether data shows both order growth and input cost constraints easing in the face of a potentially more pro-business Trump administration. Importantly, while the outlook for prices paid by manufacturers declined, the outlook for the new orders sub-index rose to 50.5 in November, entering expansion territory for the first time since March.
3. Biden to block US steel sales – WaPo
US President Joe Biden has decided to block the sale of US Steel to Japan's Nippon Steel after a year of political sparring and debate over the deal, The Washington Post reported on Thursday evening. Ta.
CBS News previously reported that Biden was expected to make a decision on the deal by Friday, after the Committee on Foreign Investment in the United States referred it to the White House for a final decision on the deal in December.
Biden, like some members of Congress, has largely opposed the deal, saying it could disrupt U.S. steel supplies. The United Steelworkers union also opposes the move, saying it would reduce U.S. steelmaking capacity and potentially lead to layoffs.
4. Bitcoin inch up
Stocks rose on Friday, extending a recovery from the price declines seen over the New Year's holiday, as traders sought clarity on the U.S. regulatory outlook under President-elect Donald Trump.
After the European Union's Crypto Asset Markets Act came into full effect in late December, stablecoins became the main focus this week as they recorded the worst market capitalization decline since the 2022 FTX crash. As well as some European exchanges, coinbase global (NASDAQ:) Inc has removed stablecoins from its platform citing compliance concerns.
The final weeks of 2024 saw a wave of selling across the broader crypto market as traders secured impressive profits throughout the year. But there was also some caution in the market, particularly around the idea that U.S. interest rates would fall at a slower pace in 2025.
Still, the virtual currency market remained relatively positive with the prospect of deregulation under the Trump administration, and Bitcoin also showed signs of recovery from its year-end lows.
5. Crude oil on track for weekly increase
Oil prices stabilized on Friday, consolidating gains in the previous session, on expectations for policy support to revive economic growth in China, the world's largest oil importer.
By 3:20 a.m. ET, U.S. crude oil futures (WTI) were up 0.1% at $73.20 a barrel, and the contract was up 0.1% at $75.99 a barrel. It became.
Both contracts closed at two-month highs on Thursday, marking their second weekly gain as trading liquidity improved as investors returned from vacation.
Chinese President Xi Jinping earlier this week promised more aggressive policies to boost growth, but the Financial Times on Friday reported that the People's Bank of China would raise interest rates from the current 1.5% this year “at an appropriate time.” It was reported that there are plans to lower the price from the standard.
