Investing.com– U.S. stock index futures rose on Tuesday, jumping after Wall Street fell sharply amid profit-taking at the end of a strong year.
At 06:15 ET (11:15 GMT), it rose 110 points, or 0.3%, gained 17 points, or 0.3%, and climbed 75 points, or 0.4%.
The benchmark averages fell sharply on Monday, with a 1.1% drop, a 1% loss and a 1.2% decline.
Despite these losses, 2024 was an outstanding year for US stocks, with all major indexes approaching record highs.
The Nasdaq is on track for a roughly 30% annual gain, the S&P 500 is set to rise over 24% and the DJIA is up more than 13%, marking the best performance for those averages since 2021.
Mega tech stocks “expensive” – BoA
Investors took advantage of the significant gains accumulated during the year, especially in the technology sector.
Rising Treasury bond yields put additional pressure on stocks. Higher yields make bonds more attractive to investors seeking lower risk returns, potentially drawing capital away from stocks.
Bank of America called megacap stocks “expensive and overcrowded” in a recent note, while favoring mid-cap stocks for better opportunities in 2025.
Tesla gains on gigafactory news
Shares of Tesla (NASDAQ: full production to start early next year.
Shares of Boeing (NYSE: ) fell 0.1% premarket, extending the previous session’s heavy losses, following a devastating air crash in South Korea that killed 179 people on Sunday when a passenger jet crashed on landing at Muan International Airport.
Data on ISM production activity is due
The economic data calendar is largely empty on Tuesday, ahead of Wednesday’s holiday, and later in the week investors will scrutinize the Institute for Supply Management’s December survey and the weekly report on , ahead of a key report due next week.
Gross gains on Chinese data
Crude oil prices rose on Tuesday, boosted by signs of rising Chinese manufacturing activity, but were on track to end lower for a second year in a row on concerns about demand in top consumer countries.
By 05:15 ET, U.S. crude oil (WTI) futures were up 0.9% at $71.60 a barrel, while the Brent contract was up 0.8% at $74.55 a barrel.
China’s manufacturing sector expanded in December but at a slower-than-expected pace, marking its third straight month of expansion as a raft of new stimulus measures provided support.
The outlook for oil demand hinges heavily on hopes that China, the world’s biggest oil importer, can revive its economy, especially as there are concerns about a potential oversupply due to an expected rise in output from non-OPEC countries.
The benchmark is still on track for a loss of around 3% in 2024, while the WTI contract is largely unchanged for the year.
(Ayushman Ojha contributed to this article.)
