Stocks are likely to move to the upside in early trading on Monday, extending the surge seen late in last Friday’s session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
The markets may benefit from an early upward move by shares of Tesla (TSLA), as the electric vehicle maker is jumping by 2.9 percent in pre-market trading.
The advance by Tesla comes after Morgan Stanley’s Adam Jonas named the stock his top automotive pick and said recent weakness creates an “attractive entry point.”
Crypto exchanges, such as Coinbase (COIN) and Robinhood (HOOD), may also help lead the markets higher after President Donald Trump announced the creation of a strategic crypto reserve for the U.S.
Buying interest may be somewhat subdued, however, as concerns about Trump’s tariffs on Mexico, Canada and China continue to weigh on the markets.
During an appearance on Fox News over the weekend, Commerce Secretary Howard Lutnick described the proposed 25 percent tariffs on imports from Mexico and Canada as “fluid” but said the additional 10 percent tariff on imports from China is “set.”
Not long after the start of trading, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of February. The manufacturing PMI is expected to edge down to 50.5 in February from 50.9 in January, but a reading above 50 would still indicate growth.
The Commerce Department is also due to release its report on construction spending in the month of January. Construction spending is expected to remain unchanged in January after climbing by 0.5 percent in December.
Following the significant pullback seen over the course of the previous session, stocks saw substantial volatility during trading on Friday. The major averages swung wildly back and forth across the unchanged line before eventually closing sharply higher.
The major averages showed strong moves to the upside going into the close, ending the session near their best levels of the day. The Nasdaq surged 302.86 points or 1.6 percent to 18,847.28, the S&P 500 shot up 92.93 points or 1.6 percent to 5,954.50 and the Dow jumped 601.41 points or 1.4 percent to 43,840.91.
Despite the late-day rally, the Nasdaq plunged by 3.5 percent for the week and the S&P 500 slumped by the 1.0 percent. The narrower Dow, on the other hand, posted a 1.0 percent weekly gain.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index shot up by 1.7 percent, while Hong Kong’s Hang Seng Index rose by 0.3 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 2.7 percent, the French CAC 40 Index is up by 1.5 percent and the U.K.’s FTSE 100 Index is up by 0.9 percent.
In commodities trading, crude oil futures are rising $0.39 to $70.15 a barrel after falling $0.59 to $69.76 a barrel last Friday. Meanwhile, after plunging $47.40 to $2,848.50 an ounce in the previous session, gold futures are jumping $36 to $2,884.50 an ounce.
On the currency front, the U.S. dollar is trading at 151.01 yen versus the 150.63 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0474 compared to last Friday’s $1.0375.
Business News
U.S. Stocks May Extend Last Friday’s Late-Day Surge
2025-03-03 13:56:54
