March S&P 500 E-Mini futures (ESH26) are up +0.63%, and March Nasdaq 100 E-Mini futures (NQH26) are up +1.08% this morning, pointing to a strong start on Wall Street in the first trading session of 2026.
Futures on the Nasdaq 100 outperformed amid renewed optimism around AI following a wave of AI-related news from Asia. Chip designer Shanghai Biren Technology Co. jumped in its Hong Kong trading debut. Also, Baidu climbed in Hong Kong after its AI chip unit confidentially filed for an IPO. In addition, DeepSeek released a paper outlining a more efficient method for developing AI.
Also supporting the positive sentiment was some relief on the trade front after Washington postponed tariff hikes on upholstered furniture, kitchen cabinets, and vanities, and cut proposed duties on Italian pasta.
In Wednesday’s trading session, Wall Street’s three main equity benchmarks ended in the red. Chip stocks fell, with Micron Technology (MU) and KLA Corp. (KLAC) sliding over -2%. Also, the Magnificent Seven stocks lost ground, with Tesla (TSLA) falling more than -1% and Meta Platforms (META) dropping about -0.9%. In addition, GlobalFoundries (GFS) slipped over -3% after Wedbush downgraded the stock to Neutral from Outperform. On the bullish side, Nike (NKE) rose more than +4% and was the top percentage gainer on the S&P 500 and Dow after a regulatory filing showed that CEO Elliott Hill bought nearly $1 million worth of the footwear maker’s shares on Monday.
The Labor Department’s report on Wednesday showed that the number of Americans filing for initial jobless claims in the past week fell by -16K to a 1-month low of 199K, compared with the 219K expected.
The benchmark S&P 500 and tech-heavy Nasdaq 100 indexes finished 2025 up about +16.4% and +20.2%, respectively, marking double-digit gains for a third straight year—their longest winning streak since 2021.
“Describing 2025 as ‘resilient’ might be an understatement. The economy showed remarkable strength by overcoming higher inflation, a slowing labor market, fewer rate cuts than originally expected, and a sharp rise in the effective tariff rate. Despite these challenges, growth remained steady without slipping into recession,” said Adam Turnquist, chief technical strategist for LPL Financial.
On the trade front, U.S. President Donald Trump delayed higher tariffs on upholstered furniture, kitchen cabinets, and vanities that were set to take effect on Thursday, citing what the White House described as “productive” trade negotiations. Trump’s proclamation, signed on Wednesday, maintains a 25% tariff on the goods that the president imposed in September. The tariffs would have risen to 30% on upholstered furniture and 50% on kitchen cabinets and vanities. The delay is set for one year. Separately, Italy’s foreign ministry said on Thursday that the U.S. had sharply reduced proposed duties on several Italian pasta makers after reassessing their U.S. activities.
Today, investors will focus on the U.S. S&P Global Manufacturing PMI, set to be released in a couple of hours. Economists forecast that the final December figure will be unrevised at 51.8.
U.S. rate futures have priced in an 85.1% probability of no rate change and a 14.9% chance of a 25 basis point rate cut at January’s monetary policy meeting.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.161%, up +0.27%.
The Euro Stoxx 50 Index is up +0.55% this morning, hitting a new record high in the first trading session of 2026. Defense stocks led the gains on Friday. Mining and energy stocks also advanced, tracking gains in precious metals and oil prices on the day. Weak PMI data from the region did little to dampen the upbeat mood. A survey showed that Eurozone factory activity slipped further into contraction territory in December as production fell for the first time in 10 months, weighed down by accelerating declines in new orders. “Demand for manufactured products from the euro zone is slowing down again. Significantly fewer orders, declining order backlogs, and continued inventory reduction are the most obvious indicators of this,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. At the same time, European Central Bank data showed that lending growth to Eurozone firms and households picked up in November, adding to evidence that the bloc continues to expand at a steady, albeit modest, pace. In other news, the BGA trade association said on Friday that German exporters should brace for continued weakness in 2026 in their two largest markets, the U.S. and China, with little sign of recovery. In corporate news, Orsted As (ORSTE.C.DX) climbed over +5% after the Danish offshore wind developer said it was contesting the U.S. government’s suspension of its $5 billion Revolution Wind project lease and seeking a court injunction.
Eurozone’s Manufacturing PMI data was released today.
Eurozone’s December Manufacturing PMI came in at 48.8, weaker than expectations of 49.2.
Financial markets in mainland China and Japan were closed today for the New Year holidays. The markets will reopen on Monday, January 5th.
Pre-Market U.S. Stock Movers
The Magnificent Seven stocks are moving higher in pre-market trading, with Tesla (TSLA) rising over +2% and Nvidia (NVDA) gaining nearly +2%.
Chip stocks advanced in pre-market trading, with Micron Technology (MU) climbing more than +3% and Marvell Technology (MRVL) rising over +2%.
ASML Holding N.V. (ASML) climbed over +5% in pre-market trading after Aletheia Capital double-upgraded the stock to Buy from Sell with a price target of $1,500.
Vertiv Holdings (VRT) rose more than +4% in pre-market trading after Barclays upgraded the stock to Overweight from Equal Weight with a price target of $200.
RH (RH) and Wayfair (W) gained more than +2% in pre-market trading after President Trump delayed higher tariffs on upholstered furniture, kitchen cabinets, and vanities.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Friday - January 2nd
Hurco (HURC).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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