US Futures Signal Wall Street Rally To Extend: Markets Wrap

US stocks looked set to build on their recent advance to record highs as Donald Trump’s victory in the US presidential race stoked investors’ appetite for US assets.

Futures pointed to gains of about 0.3% for the S&P 500, which hit its 50th record high of the year on Friday, while Nasdaq 100 looked set to rise by a similar amount. The biggest premarket gainer of the day was EV maker Tesla Inc, which rose as much as 7.3%. Its valuation surpassed $1 trillion on Friday, on a view that a Trump presidency will be a positive for Elon Musk’s company.

Crypto-linked stocks also gained in premarket trading as Bitcoin rallied past $81,000 for the first time on the prospect of a Republican-led Congress with pro-crypto lawmakers. While US bond markets were shut for a holiday, the dollar rallied 0.3% against a basket of currencies, adding to a six-week winning streak.

“Between now and the end of the year, I can easily see how the US market particularly will continue to be strong on hopes that everything Trump has said will come to pass, particularly when it gets confirmed that he got a clean sweep,” said Nick Clay, portfolio manager at Redwheel.

While Trump’s pledge to impose hefty tariffs on trade partners has weighed heavily on European shares, the Stoxx 600 index rebounded after three weeks of declines. The gauge added 0.9%, with all industry groups in the index climbing, as the mood was lifted by a slew of robust company earnings, including German tiremaker Continental AG and insurance firm Hannover Re.

The wait is on for the next slug of inflation data due Wednesday for clues on the Federal Reserve’s interest-rate trajectory, with annual price growth seen to have quickened slightly to 2.6% in October. Traders will also listen out for Fed policymakers’ speeches after Minneapolis Fed President Neel Kashkari indicated on weekend that rates could ease less than previously expected due to the strong economy.

Earlier, China’s CSI 300 benchmark fell as much as 1.4%, before erasing losses to close with modest gains. Oil pared losses to trade flat after China’s latest efforts disappointed markets. Iron ore declined toward $100 a ton.

Key events this week:

• Japan current account, Monday
• Denmark CPI, Monday
• Norway CPI, Monday
• United Nations climate change conference, COP29 begins, Monday
• Germany CPI, Tuesday
• UK jobless claims, unemployment, Tuesday
• Fed speakers including Christopher Waller, Tuesday
• Japan PPI, Wednesday
• Eurozone industrial production, Wednesday
• US CPI, Wednesday
• Australia unemployment, Thursday
• Eurozone GDP, Thursday
• US PPI, jobless claims, Thursday
• Reserve Bank of Australia Governor Michele Bullock speaks, Thursday
• Fed Chair Jerome Powell speaks, Thursday
• ECB President Christine Lagarde speaks, Thursday
• BOE Governor Andrew Bailey speaks, Thursday
• Japan GDP, industrial production, Friday
• China retail sales, industrial production, fixed-asset investment, Friday
• UK GDP, industrial production, trade balance, Friday
• US retail sales, Friday
• Alibaba earnings, Friday

Some of the major moves in markets:

Stocks

• The Stoxx Europe 600 rose 1.2% as of 10:26 a.m. London time
• S&P 500 futures rose 0.3%
• Nasdaq 100 futures rose 0.3%
• Futures on the Dow Jones Industrial Average rose 0.3%
• The MSCI Asia Pacific Index fell 0.9%
• The MSCI Emerging Markets Index fell 0.8%

Currencies

• The Bloomberg Dollar Spot Index rose 0.3%
• The euro fell 0.3% to $1.0685
• The Japanese yen fell 0.7% to 153.65 per dollar
• The offshore yuan fell 0.1% to 7.2098 per dollar
• The British pound fell 0.1% to $1.2902

Cryptocurrencies

• Bitcoin rose 2.7% to $82,057.85
• Ether rose 0.9% to $3,200.09

Bonds

• The yield on 10-year Treasuries was little changed at 4.30%
• Germany’s 10-year yield declined three basis points to 2.33%
• Britain’s 10-year yield was little changed at 4.43%

Commodities

• Brent crude fell 1.1% to $73.03 a barrel
• Spot gold fell 0.5% to $2,671.85 an ounce

Source