Following the strength seen in the previous session, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by less than a tenth of a percent.
Traders may be reluctant to make significant moves amid some uncertainty about the near-term outlook for the markets after the Dow jumped to a record closing high during Monday’s session.
A relatively quiet day on the U.S. economic front may also keep traders on the sidelines ahead of the release of several key reports in the coming days.
Trading on Wednesday may be impacted by reaction to reports on private sector employment, job openings and service sector activity.
However, the highlight of the week is likely to be the release of the Labor Department’s closely watched monthly jobs report on Friday.
The data could impact the outlook for interest rates ahead of the Federal Reserve’s next monetary policy meeting later this month.
While the Fed is likely to leave rates unchanged at its January 27-28 meeting, the central bank is widely expected to cut rates by at least another quarter point in the coming months.
Stocks moved mostly higher during trading on Monday, regaining ground following the slump seen during holiday-interrupted previous week. The major averages all moved to the upside, with the Dow reaching a new record closing high.
The major averages finished the day off their highs of the session but still firmly positive. The Dow jumped 594.79 points or 1.2 percent to 48,977.18, the Nasdaq advanced 160.19 points or 0.7 percent to 23,395.82 and the S&P 500 climbed 43.58 points or 0.6 percent to 6,902.05.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 1.3 percent, while China’s Shanghai Composite Index surged by 1.5 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.2 percent, the German DAX Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is up by 1.0 percent.
In commodities trading, crude oil futures are rising $0.26 to $58.58 a barrel after jumping $1 to $58.32 a barrel on Monday. Meanwhile, after soaring $121.90 to $4,451.50 an ounce in the previous session, gold futures are climbing $17.80 to $4,469.30 an ounce.
On the currency front, the U.S. dollar is trading at 156.36 yen compared to the 156.38 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1711 compared to yesterday’s $1.1720.
Business News
U.S. Stocks May Lack Direction After Dow Reaches Record Closing High
2026-01-06 13:49:17
