In a robust start to the trading year, the SPDR S&P 500 ETF Trust showed a positive trend, rising by 1%. Similarly, the Invesco QQQ Trust experienced an increase of 1.2% during Thursday's premarket activity, as investors cautiously explored market opportunities ahead of the new year's inaugural trading day.
US stock futures also reflected optimism, with S&P 500 Index futures climbing 1% alongside a 0.8% gain in Dow Jones Industrial Average futures, and Nasdaq futures seeing a 1.2% increase prior to regular trading sessions. In the real estate market, US mortgage applications witnessed a sharp decline of 21.9% for the two weeks ending December 27.
Specifically, refinancing applications dropped by 36%, while purchase applications fell by 13%. This downturn coincided with a rise in 30-year fixed mortgage rates, which reached 6.97%, according to data provided by the Mortgage Bankers Association. Investors will keep a close eye on the weekly jobless claims report, scheduled for release at 8:30 am ET, which may provide insights into the labor market's health.
Additionally, important economic indicators are set to be published, including the final Purchasing Managers' Manufacturing index for December at 9:45 am ET and the November construction spending report at 10 am ET. The weekly EIA petroleum inventories report will also be made available at 11 am ET.
Meanwhile, in the realm of cryptocurrencies, Bitcoin saw an increase of 2.1%, while the ProShares Bitcoin Strategy ETF recorded a notable gain of 3.5% during premarket trading. Health Care stocks are also in focus, with the Health Care Select Sector SPDR Fund rising 0.7%. The Vanguard Health Care Index Fund matched this performance with a 0.7% increase, even as the iShares US Healthcare ETF experienced a marginal decline of 0.1%.
For later in the trading day, the iShares Biotechnology ETF remained inactive. Hutchmed, a biopharmaceutical company, saw its stock climb 5.8% after the China National Medical Products Administration granted priority review to its drug application for Orpathys and Tagrisso. Hutchmed also revealed a significant $608 million agreement to divest a 45% interest in Shanghai Hutchison Pharmaceuticals.
Industrial sector movements showed the Industrial Select Sector SPDR Fund gaining 0.9%, whereas both the Vanguard Industrials Index Fund and the iShares US Industrials ETF remained inactive. Tutor Perini's stock surged nearly 4% in premarket trading following the announcement of Gary Smalley's appointment as CEO.
In the energy sector, the iShares US Energy ETF saw a slight increase of 0.1%, while the Energy Select Sector SPDR Fund rose by 1%. Kosmos Energy’s stock was up 3.3%, buoyed by the expectation of revenue recognition from its Greater Tortue Ahmeyim liquefied natural gas project slated for Q1. The technology sector exhibited gains as well, with the Technology Select Sector SPDR Fund rising 1.4%.
The iShares US Technology ETF recorded a 1.5% increase, contrasting with the iShares Expanded Tech Sector ETF, which remained unchanged. Among semiconductor ETFs, SPDR S&P Semiconductor ETF was inactive, while the iShares Semiconductor ETF gained 1.6%. Notably, Nvidia shares rose 1.6% following reports of a $1 billion investment in AI companies over the past year.
Consumer stocks also saw movement, with the Consumer Staples Select Sector SPDR Fund up by 0.3%. The Vanguard Consumer Staples Fund gained slightly by 0.01%, while the iShares US Consumer Staples ETF remained inactive. The Consumer Discretionary Select Sector SPDR Fund, on the other hand, climbed 1.3%.
However, Alibaba Group shares faced a drop of 1% after the company announced a significant divestiture of its 73.7% stake in hypermarket operator Sun Art for up to 12.30 billion Hong Kong dollars ($1.58 billion). In the financial sectors, the Financial Select Sector SPDR Fund rose 0.9%, with Direxion Daily Financial Bull 3X Shares gaining 2.6%.
In contrast, the Direxion Daily Financial Bear 3X Shares dropped by 2.8%. Meanwhile, Arrow Financial shares fell nearly 1% following the merging of its subsidiaries—Glens Falls National Bank and Trust and Saratoga National Bank and Trust. This consolidation resulted in a renaming of the entity to Arrow Bank National Association.
On the commodities front, US West Texas Intermediate crude oil rose by 1.5% to $72.78 per barrel, while natural gas saw a similar increase of 1.5% at $3.69 per 1 million British Thermal Units. The United States Oil Fund was up 1.4%, with the United States Natural Gas Fund increasing by 1.8%. Gold futures saw a 0.7% rise, reaching $2,659.40 per ounce, while silver futures climbed 2.1% to $29.86 per ounce.
SPDR Gold Shares increased by 0.8%, while the iShares Silver Trust was up by 1.6%..