Futures Pointing To Roughly Flat Open On Wall Street

The major U.S. index futures are currently pointing to a roughly flat open on Tuesday, with stocks likely to show a lack of direction following the strength seen in the previous session.

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.

The notable upward move by the Dow partly reflected a sharp increase by shares of Chevron (CVX), with the energy giant soaring by 5.1 percent.

Chevron, which is one of the leading private oil companies in Venezuela, surged following a U.S. attack on the country that led to the capture of President Nicolás Maduro.

The price of crude oil also shot up in reaction to the news, contributing to substantial strength among oil service stocks.

Reflecting the strength in the sector, the Philadelphia Oil Service Index spiked by 5.5 percent amid optimism about potential gains from rebuilding Venezuela’s oil infrastructure.

Gold stocks also saw considerable strength, as the price of the precious metal jumped due to its appeal as a safe haven amid increased geopolitical tensions.

Financial, airline and retail stocks also saw significant strength, while utilities and pharmaceutical stocks moved sharply lower.

On the U.S. economic front, a report released by the Institute for Supply Management showed its reading on U.S. manufacturing activity unexpectedly decreased in the month of December.

The ISM said its manufacturing PMI edged down to 47.9 in December after slipping to 48.2 in November, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 48.3.

Commodity, Currency Markets

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.

Asia

Asian stocks extended a global record run on Tuesday as investors overlooked geopolitical tensions and looked ahead to the release of key U.S. economic data for direction.

A report showed U.S. manufacturing activity shrank in December by the most since 2024, boosting bets for more policy easing by the Federal Reserve.

The dollar index retreated on improved risk sentiment after U.S. President Donald Trump affirmed in an interview with NBC News that his country is not at war with Venezuela.

Gold added to strong overnight gains to hover above $4,460 an ounce, while oil prices eased after settling up $1 a barrel in the previous session on concerns about the possible impact on crude flows from Venezuela, home to the world’s largest oil reserves.

China’s Shanghai Composite Index jumped 1.5 percent to 4,083.67, reaching its highest level in more than a decade ahead of the Lunar New Year holiday.

Hong Kong’s Hang Seng Index surged 1.4 percent to 26,710.45, driven by gains in the financial sector.

Japanese markets rallied to set another record after a broad rally on Wall Street overnight. The Nikkei 225 Index shot up 1.3 percent to 52,518.08, led by oil-related stocks and precision tools maker Disco Corp., which soared 6.1 percent. The broader Topix Index closed 1.8 percent higher at 3,538.44.

Seoul stocks surged to finish at a new record high, buoyed by gains for semiconductors, brokerages and shipbuilders. The Kospi jumped 1.5 percent to 4,525.48.

Australian stocks gave up early gains to end lower due to valuation concerns and portfolio rebalancing. The benchmark S&P/ASX 200 Index dropped 0.5 percent to 8,682.80, while the broader All Ordinaries Index slipped 0.4 percent to 8,996.90.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rose 0.6 percent to 13,663.58, closing near a six-week high after the U.S. military operation in Venezuela sparked optimism about future investment in the U.S. oil industry.

Europe

European stocks are turning in a mixed performance on Tuesday, with geopolitical and regional economic data in focus.

Final survey data from S&P Global showed the euro area private sector grew for a twelfth consecutive month in December but the pace of growth softened to a three-month low on weaker demand for goods and services,

The HCOB final composite output index dropped to 51.5 in December from November’s 30-month high of 52.8. The reading was also below the initial estimate of 51.9.

Elsewhere, U.K. shop price inflation accelerated in December due to higher increase in food prices, the British Retail Consortium said.

The shop price index posted an annual growth of 0.7 percent in December, following an increase of 0.6 percent in November. This was in line with the three-month average of 0.7 percent.

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 corporate news, Danish drugmaker Novo Nordisk has moved sharply higher after launching its once-daily Wegovy pill in the United States.

TomTom has also surged. The Dutch mapping and location technology company has renewed its partnership with Uber Technologies to integrate its maps, Maps APIs and live services across Uber’s global platform.

German win turbine maker Nordex has also moved to the upside after receiving new orders from wind and solar park developer UKA.

Prudential has also moved notably higher. The British insurance and investment giant has launched a $1.2bn share buyback program.

Next Plc shares have also jumped. The fashion retailer lifted its annual profit forecast after reporting a significant 10.6 percent increase in full-price sales for the nine weeks ending December 27, 2025.

InPost shares have also soared. The parcel locker company said it had received an indicative buyout offer and a special committee will assess all aspects of a potential transaction.

U.S. Economic News

No major U.S. economic data is scheduled to be released today.