Investing.com – US Stock Market Updates

US stock index futures pointed up on Friday, indicating a potential rebound from a rough start to the trading year on Wall Street, marked by a decline in shares of Tesla (NASDAQ:TSLA). Investors are anticipating the release of factory activity data in the US, which might offer insights into the manufacturing sector amid the upcoming Trump administration. Additionally, President Biden is reportedly set to block the sale of U.S. Steel to Japan’s Nippon Steel based on recent reports by the Washington Post.

1. Futures Higher

US stock futures have edged higher on Friday as traders reflect on a disappointing start to 2025 from the previous session.

As of 03:19 ET (08:19 GMT), the Dow futures contract increased by 85 points (0.2%), S&P 500 futures gained 19 points (0.3%), and Nasdaq 100 futures rose by 97 points (0.5%).

The main indices on Wall Street had experienced a decline at the start of the new year trading on Thursday, with the Dow Jones Industrial Average dropping by 152 points (0.4%), the S&P 500 falling by 13 points (0.2%), and the Nasdaq Composite losing 30 points (0.2%).

Tesla’s shares fell over 6% after the company reported its first annual sales decline despite significant price cuts and promotional efforts to boost demand.

In terms of labor market data, initial and continuing unemployment claims in the US have both decreased in the previous week, which could influence the Federal Reserve’s decision to maintain interest rates at the upcoming policy meeting this month.

2. ISM Manufacturing PMI Ahead

Friday is relatively quiet in terms of economic data, though investors will examine US factory activity figures for December.

The Institute for Supply Management’s purchasing managers’ index for the manufacturing sector is anticipated to slightly decrease to 48.2, down from a five-month high of 48.4 in November. A reading below 50 generally indicates a contraction in the industry, which represents over 10% of the US economy.

This marks the eighth consecutive month below the 50-point threshold, although it remains above 42.5, a necessary mark that signals broader economic expansion.

Markets will be eager to see if the data indicates growth in orders and a reduction in input cost constraints ahead of the pro-business Trump administration. Notably, the new orders sub-index rose to 50.5 in November, indicating expansion for the first time since March, while the prices paid by manufacturers showed a decline.

3. Biden Set to Block U.S. Steel Sale – WaPo

President Biden has reportedly decided to block the proposed sale of U.S. Steel to Japan’s Nippon Steel, following significant debate regarding the takeover, as reported by the Washington Post.

CBS News highlighted that a decision on the deal was expected as early as Friday after the Committee on Foreign Investment in the United States referred the decision to the White House in December.

Biden has been largely critical of the deal, alongside various lawmakers, asserting that it could jeopardize US steel supplies. The United Steelworkers Union has also opposed the move, claiming it could reduce US steelmaking capacity and trigger layoffs.

4. Bitcoin Inches Up

Bitcoin saw a rise on Friday, continuing its recovery from a significant price drop over the New Year holiday as traders seek clarity on US regulatory conditions under the incoming Trump administration.

This week, stablecoin Tether garnered attention as it registered its most substantial decline in market capitalization since the 2022 FTX crash, after the EU’s Markets in Crypto-Assets law took effect in late December. Several European exchanges and Coinbase Global (NASDAQ:COIN) Inc. had to remove the stablecoin due to compliance issues.

The broader crypto market faced a wave of selling in late 2024 as traders realized profits, but cautious optimism remains about potentially more favorable regulations under Trump, with Bitcoin rebounding from year-end lows.

5. Oil on Track for Weekly Increase

Oil prices stabilized on Friday, consolidating gains from the previous session amid optimism for policy support to stimulate economic growth in China, the largest crude importer.

As of 03:20 ET, US crude futures (WTI) rose by 0.1% to $73.20 per barrel, while the Brent contract increased by 0.1% to $75.99 per barrel.

Both contracts reached their highest values in over two months on Thursday and are poised for their second consecutive weekly increase after traders returned from holiday breaks, enhancing trade liquidity.

Earlier in the week, China’s President Xi Jinping pledged to implement more proactive policies to bolster growth. Reports surfaced Friday indicating the Chinese central bank plans to lower interest rates from the current 1.5% at an appropriate time this year.