US equity futures are currently stable leading into Tuesday's opening bell, reflecting a sense of equilibrium among investors following a significant rise in technology stocks. The Dow Jones Industrial Average futures have reported a modest increase of 0.3%, while S&P 500 futures have seen an uptick of 0.2%, and Nasdaq futures remain unchanged as market momentum stabilizes. The technology sector has received a positive jolt following announcements from Microsoft.
On Friday, Brad Smith, the President of Microsoft, outlined an ambitious plan to invest a staggering $80 billion in fiscal 2025 earmarked for the establishment of artificial intelligence-driven data centers. This investment could potentially reshape the landscape of tech infrastructure and boost related stock performance. In the commodities market, oil prices have experienced gains, with the front-month global benchmarks for North Sea Brent crude rising by 0.8% to reach $76.92 per barrel.
Likewise, US West Texas Intermediate crude has moved up 0.6% to $74.02 per barrel, signaling a potential recovery in energy prices amid ongoing economic adjustments. The US trade deficit, which was released at 8:30 am ET, has widened to $78.19 billion in December, a significant increase from $73.62 billion in the previous month.
This reading is in line with estimates compiled by Bloomberg, which anticipated a $78.3 billion gap. Additionally, the Institute for Supply Management Services index, scheduled to be disclosed at 10 am ET, is projected to rise to 53.5 in December from the previous reading of 52.1. This indicates a stable increase in service sector activity.
In parallel, forecasters expect job openings as reported by the US Department of Labor's Job Openings and Labor Turnover Survey to show a reduction, dropping to 7.73 million in November from 7.74 million. Across global markets, Japan's Nikkei closed impressively higher at 2%, showing resilience in investor confidence.
Conversely, Hong Kong's Hang Seng index ended the day down 1.2% while China's Shanghai Composite stabilized with a 0.7% increase. In Europe, the UK's FTSE 100 faced a slight decline, down by 0.1%, whereas Germany's DAX index experienced gains of 0.6% in early afternoon trading. Noteworthy movements in equities include Getty Images, whose shares soared by 46% pre-bell, following their merger agreement with Shutterstock.
This strategic alignment is set to create a joint entity valued at approximately $3.7 billion, with Shutterstock’s stock also rising by 28%. On a less favorable note, Tesla stocks took a hit, falling by 1.9% after the US National Highway Traffic Safety Administration launched investigations into the company's vehicle movement technology over suspected safety concerns.
The market remains vigilant as these industry dynamics unfold. Overall, market participants are closely monitoring these developments, where tech investments, oil price fluctuations, and significant mergers are all set to influence the trading landscape in the coming days..