Investing.com — Wall Street Opening Positively

Wall Street is anticipated to open the holiday-shortened week positively, driven by easing inflation pressures. Apple is projected to have a strong holiday season, while crude prices are climbing. President Donald Trump has threatened to retake the Panama Canal, and UK economic growth stalled in Q3.

1. Apple Set for Strong Holiday Season – Wedbush

Investors should watch Apple (NASDAQ:AAPL) as it is poised for a strong holiday season, according to Wedbush. The integration of OpenAI's ChatGPT into its devices ahead of peak shopping season is timely. Analysts noted that iPhone 16 upgrades are trending positively leading into Christmas. The rollout of Apple Intelligence in regions like China is expected by April, contributing to growth estimates. Wedbush believes Apple may reach a $4 trillion market cap by early 2025.

2. Futures Edge Higher on Holiday-Shortened Week

US stock futures climbed at the start of a holiday-shortened week, boosted by favorable US inflation readings and the avoidance of a government shutdown. Dow futures rose 90 points (0.2%), S&P 500 futures increased by 24 points (0.4%), and Nasdaq 100 futures gained 128 points (0.6%). Optimism persists after lower-than-expected core US inflation figures last week suggested potential interest rate cuts next year. However, analysts remain cautious about the concentration of gains in the largest companies as a vulnerability heading into 2025.

Trading volume may be muted this week, with early market closures around Christmas.

3. UK Economy Failed to Grow in Q3

The UK economy showed no growth in Q3, prompting expectations of interest rate cuts by the Bank of England (BoE) in 2025. The Office for National Statistics (ONS) revised Q3 GDP growth to 0.0%. Despite inflation rising to 2.6%, the BoE remains concerned about stagnation. The CBI forecasts reduced output and hiring, coupled with price increases due to tax hikes.

4. Trump Threatens to Retake Panama Canal

President-elect Donald Trump threatened to regain US control over the Panama Canal, claiming excessive charges by Panama. He expressed concern over Chinese influence in the region, stating he would prevent the canal from falling into the wrong hands. While a Hong Kong-based company operates nearby ports, the canal remains under Panamanian control.

5. Oil Starts Week in Positive Territory

Crude prices rose on Monday, with US crude futures climbing 0.4% to $69.75 and Brent reaching $72.83. The rise was fueled by cooling inflation data and President Biden's approval of government funding, which alleviated shutdown concerns. The outlook for oil is also buoyed by the potential for increased economic activity with more Fed interest rate cuts next year.