U.S. Stocks Poised To Kick Off 2025 On Upbeat Note

After slumping in the final days of 2024, stocks are likely to start the new year on an upbeat note. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.7 percent.

Traders may look to pick up stocks at relatively reduced levels following the notable downward move seen to close out last year.

The S&P 500 and the Nasdaq have closed lower for four straight sessions, with the tech-heavy Nasdaq ending New Year’s Eve trading at its lowest closing level in a month.

Optimism about the outlook for the markets may also generate buying interest ahead of President-elect Donald Trump’s second inauguration later this month.

Trading activity may be somewhat subdued, however, as some traders are likely to remain away from their desks following the New Year’s Day holiday on Wednesday.

On the U.S. economic front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ended December 28th.

The report said initial jobless claims slipped to 211,000, a decrease of 9,000 from the previous week’s revised level of 220,000.

The dip surprised economist, who had expected jobless claims to inch up to 222,000 from the 219,000 originally reported for the previous week.

With the unexpected decrease, jobless claims fell to their lowest level since hitting 209,000 in the week ended April 27, 2024.

Stocks showed a lack of direction early in the session on Tuesday but moved mostly lower over the course of the trading day. The tech-heavy Nasdaq led the downward move, slumping to its lowest closing level in a month.

The Nasdaq slid 175.99 points or 0.9 percent to 19,310.79 and the S&P 500 fell 25.31 points or 0.4 percent to 5,881.63. The narrower Dow posted a more modest loss, edging down 29.51 points or 0.1 percent to 42,544.22.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index tumbled by 2.7 percent and 2.2 percent, respectively, while Australia’s S&P/ASX 200 Index climbed by 0.5 percent.

The major European markets are also mixed on the day. While the French CAC 40 Index is down by 0.4 percent, the German DAX Index is up by 0.2 percent and the U.K.’s FTSE 100 Index is up by 0.7 percent.

In commodities trading, crude oil futures are surging $0.91 to $72.63 a barrel after climbing $0.73 to $71.72 a barrel on Tuesday. Meanwhile, after jumping $22.90 to $2,641 an ounce in the previous session, gold futures are rising $12.40 to $2,653.40 an ounce.

On the currency front, the U.S. dollar is trading at 157.02 yen versus the 157.24 yen it fetched on Wednesday. Against the euro, the dollar is valued at $1.0325 compared to yesterday’s $1.0356.