U.S. Stock Futures Gain Ground Ahead of Key Employment Data

U.S. stock index futures rose on Monday, beginning the week on a positive note as investors anticipate the release of vital employment data later this week.

Dow Jones futures were up 40 points, about 0.1%, S&P 500 futures were up 30 points, 0.5%, and Nasdaq 100 futures were up 180 points, 0.9%.

Last Thursday, the New York Stock Exchange was closed in observance of the death of former President Jimmy Carter.

Markets Await Federal Reserve Meeting Minutes and Employment Data

The minutes of the Federal Reserve’s December 17-18 meeting are set to be released on Wednesday. In addition, speeches from Federal Reserve officials Patrick Harker, Thomas Barkin, and Jeffrey Schmid this week may offer further insights into the central bank’s future interest rate policies.

Markets are paying close attention to the Fed’s stance, which has signaled fewer rate cuts this year due to persistent inflationary pressures and the economy’s resilience.

The highlight of the week will be Friday’s December employment report, expected to show that the U.S. economy added 154,000 jobs during the month. The unemployment rate is projected to hold steady at 4.2%.

The U.S. economic calendar is packed with significant releases, including the December ISM Services PMI, S&P Global PMIs, ADP employment data, JOLTS job openings, November factory orders, trade figures, and weekly jobless claims.

Tech Stocks in the Spotlight

Several company-level results are expected this week, including those from Constellation Brands (STZ), Walgreens Boots Alliance (WBA), and Delta Air Lines (DAL).

In a recent note, Goldman Sachs analysts stated, “In 2025, we expect the S&P 500 to return 11% and reach 6,500 points by the end of the year. Earnings growth will be the primary driver of profitability.”

The technology sector is likely to remain a focus on Monday after posting significant gains at the end of the previous week, signaling a recovery from losses incurred during the final week of 2024.

Among the “Magnificent Seven” megacaps, market favorite Nvidia (NVDA) rose 4.5%, while Tesla (TSLA) surged more than 8% on Friday.

Crude Oil Prices Rise Ahead of Key Data

Crude oil prices climbed on Monday as investors looked forward to the release of key U.S. economic data later this week.

Oil prices have now logged two consecutive weeks of gains, supported by optimism regarding improving demand in China, where Beijing is set to implement new stimulus measures in the coming months.

Additionally, cooler weather in the United States and Europe is anticipated to boost oil demand, particularly for distillates such as heating oil.

However, the dollar’s strength limited gains on Monday, with the greenback hovering near two-year highs as markets awaited critical economic data that could provide further insight into the health of the U.S. economy, the world’s largest energy consumer.