US stock futures showed slight gains on Tuesday, following the Dow’s record-setting close, as Wall Street continued its recovery from last week’s sell-off in technology stocks. Futures for the Dow Jones Industrial Average rose by 0.1%, inching closer to the significant benchmark of 50,000. Simultaneously, contracts for the S&P 500 and the tech-heavy Nasdaq 100 advanced by approximately 0.2%.
These developments follow a positive market performance at the start of the week, where the Dow eked out another all-time high above the 50,000 mark. The S&P 500 climbed nearly 0.5% and is approaching its own record levels, while the Nasdaq Composite outperformed with a 0.9% gain. The recent rally was largely fueled by a resurgence in technology shares, suggesting that investor confidence is rebounding in the wake of previous concerns pertaining to software and major tech companies.
Earnings reports remain a focal point, with Coca-Cola and Ford set to release figures on Tuesday, the former before market open and the latter after the close. Economic indicators are also on investors’ minds, particularly the retail sales data scheduled for release Tuesday morning. Following that, attention will shift to the anticipated January jobs report on Wednesday, which carries significance amid recent data indicating a potential softening in the labor market. Additionally, the latest Consumer Price Index, highlighting inflation trends, is set to be unveiled on Friday.
In the realm of commodities and cryptocurrencies, gold and bitcoin are still attracting attention, though both assets have recently experienced downward pressure as they seek stability after a tumultuous week. Bitcoin, in particular, has been marked by significant volatility, attributed to a so-called “crisis of confidence” according to market analysts.
On the individual stock front, On Semiconductor faced a notable decline, with its stock sliding by 4% in premarket trading after the company reported lower fourth-quarter profits compared to the previous year. Despite citing “signs of stabilization” in key markets, the chipmaker’s earnings per share came in at $0.45 on revenue of $1.53 billion, falling short of expectations and dipping from earnings of $0.88 per share during the same period last year. While fourth-quarter revenue met estimates, the company noted annual sales declines across all business groups, including Power Solutions, Analog & Mixed Signal, and Intelligent Sensing. The only segment reporting growth was Intelligent Sensing, which saw a quarter-over-quarter increase. Looking ahead to the first quarter, On Semiconductor expects revenue within the range of $1.43 billion to $1.53 billion, with adjusted diluted earnings per share anticipated between $0.56 and $0.66, slightly below Wall Street’s forecast of $0.61.
The market is also responding to broader economic sentiments, with reports on surging costs for memory chips impacting profits across various electronics companies. Meanwhile, overseas, a recent election result in Japan has spurred a surge in benchmark indexes, contributing to a positive outlook across major gauges in the region.
