US stock futures were slightly lower on Tuesday, after both the S&P 500 and Nasdaq Composite hit their highest levels in more than a week. The drop coincided with some important statements that affected the market movement, including statements by US President-elect Donald Trump.
US Stock Futures Fall Slightly
On Tuesday morning, US stock futures were slightly lower after the S&P 500 and Nasdaq Composite hit their highest levels in a week during the previous session. The S&P 500 futures contract was down 5 points, or 0.1%, while the Nasdaq 100 futures contract was down 27 points, or 0.1%. In addition, the Dow Jones Industrial Average futures contract was down 31 points, or 0.1%.
The decline in futures is due to investors’ concerns about overvaluations of markets, as US Treasury yields have recently risen. There was also concern about weak liquidity in the markets, which affected the movement of stocks in general.
Trump’s statements spark controversy and affect stock markets
A report published by the Washington Post sparked great controversy after it revealed that the team of US President-elect Donald Trump is considering reducing plans to impose tariffs on some products. According to the newspaper, Trump plans to reduce the scope of tariffs to be limited to vital sectors only.
A wave of optimism in the markets followed the report, as shares of companies such as Ford and General Motors rose on expectations that these plans will positively impact the sector.
However, Trump denied this report on his own platform, “Truth Social,” indicating that the reports are incorrect and that he has not made any changes to his tariff policy.This contradiction between the statements has increased uncertainty in the markets, leading some to question the future economic steps that new US administration will take.
Nvidia unveils new innovations that will boost technology markets
In the tech space, NVIDIA CEO Jensen Huang was the big news in the markets today. Huang unveiled a new series of RTX 50 gaming chips, which are enhanced with artificial intelligence to deliver higher performance than the previous generation. He also announced the development of Blackwell’s AI servers, which are now in full production.
NVIDIA shares jumped after the announcement, rising 3% in the markets. The company also announced new plans to use artificial intelligence to improve games and augmented reality videos, which strengthens NVIDIA’s position in the semiconductor industry and reflects the strength of future trends for technology companies in the field of artificial intelligence.
US services sector data and its impact on markets
Investors are also looking forward to economic data coming from the United States, including indicators of service sector activity. Analysts expect activity in this sector to increase after it slowed down in the previous month. They predict the non-manufacturing Purchasing Managers’ Index (PMI), which tracks activity in the sector, to rise to 53.5 in December, up from 52.1 in November.
A rise in this index indicates expanding activity in the sector that accounts for more than two-thirds of the US economy. The figure is considered a measure of the health of the overall economy, with a reading above 50 indicating an expansion in economic activity. The data will also help determine the direction of the economy towards the end of this year as the new administration takes office.
US jobs report
The US jobs report due on Friday will be the most important economic event of the week. Investors are expecting the new report to provide details on the state of the US labor market, which will help determine the direction of the Federal Reserve’s fiscal and economic policy in the coming months.
Oil prices continue to fall
On the commodity front, oil prices continued to decline this week after last week’s gains. West Texas Intermediate crude futures fell 0.3% to $73.30 a barrel, while Brent crude futures also fell 0.3% to $76.08 a barrel.
This decline in oil prices reflects weak market optimism about political support for reviving economic growth in China, the world’s largest oil importer. However, ongoing concerns about shrinking supplies from major countries such as Russia and Iran may limit losses in oil prices, reinforcing expectations of continued oil price volatility.
4o
Today, US markets witnessed clear fluctuations, affected by US President-elect Donald Trump’s statements regarding tariff plans, as well as Nvidia’s announcement of new innovations that boosted technology markets. Important economic data continues to reveal the trends of the US economy, at a time when everyone is awaiting the important US jobs report on Friday. Meanwhile, oil prices declined amid expectations of weak economic impacts on global markets. This weekend could bring new surprises that will affect the movements of global financial markets, as we continue to follow major economic developments in the United States and China, as well as the movements of major companies in the fields of technology and energy.
In addition, today will be released the Job Openings and Labor Turnover Survey for November, which is expected to have a direct impact on the movement of markets. This report will help determine the extent of demand for jobs in the world’s largest economy and provide a glimpse into the ability of the US economy to grow in light of the current challenges.
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