U.S. stock index futures gained ground on Monday, as investors looked ahead to an anticipated Federal Reserve interest rate cut later in the week, as well as key data prints that will help set the tone for policy next year.
Market Snapshot
At 7:51 a.m. ET, U.S. S&P 500 E-minis were up 14.75 points, or 0.24%, Nasdaq 100 E-minis were up 92.25 points, or 0.42%, Dow E-minis were up 90 points, or 0.2%.
Pre-Market Movers
Tesla - Shares of Tesla were gaining 1%. The electric-vehicle company rose 4.3% on Friday to $436.23, a record closing high, after a report from Reuters suggested President-elect Donald Trump likely would end a program requiring auto makers to report accidents that occur while vehicles are using advanced-driver-assistance systems. On Sunday, Wedbush analyst Dan Ives raised his price target on the stock to aWall Street-high of $515 a share, up from $400, saying the “autonomous future is coming sooner.” He expects Trump to fast track initiatives that makes launching self-driving cars easier.
Broadcom - Broadcom was up 3% after the semiconductor and software company rose 24% on Friday to a record closing high of $224.80 and finished with a market capgreater than $1 trillionfor the first time. The 24% jump was the stock’s largest one-day gain on record, according to Dow Jones Market Data. Broadcom said artificial-intelligence revenue soared 220% in its fiscal year, with CEO Hock Tan saying the company’s AI market opportunity for accelerators and networking in fiscal 2027 would range from $60 billion to $90 billion.
Palantir, MicroStrategy, Axon Enterprise, Moderna, Super Micro Computer, Illumina - Palantir Technologies was down 1.6% in premarket trading, MicroStrategy rose 3.2%, and Axon Enterprise gained 0.8% as the three companies were added to the Nasdaq 100 index as part of itsannual reconstitution. They will be replacing Moderna, down 0.2%, Super Micro Computer, down 13.4%, and Illumina, up 0.1%. The changes, announced late Friday, will take effect before the market opens on Dec. 23. The changes were expected because the reconstitution adds companies with the highest markets values in the Nasdaq Composite index that aren’t in the Nasdaq 100 and drops companies with the lowest market values.
Super Micro, meanwhile, has asked Evercore to help the AI server maker raise capital, according to a report from Bloomberg, which cited people familiar with the matter. The company is considering raising equity and debt to shore up its finances, the people told Bloomberg. The company has delayed filing its latest financial reports but earlier this month received an extension until Feb. 25, which helped it avoid the immediate threat of delisting from the Nasdaq.
Crypto Stocks - In addition to being added to the Nasdaq 100, MicroStrategy, the business software company that has become the largest corporate holder of Bitcoin, was getting a lift from the cryptocurrency’s move past $106,000 over the past 24 hours. Bitcoin set a record high of $106,495, according to CoinDesk, and at last check was at $104,072. Crypto-linked stocks such Coinbase, MARA Holdings, Riot Platforms, CleanSpark, and Bitfarms rose 1.5%, 1.9%, 2.2%, 2.2%, and 3.1%, respectively.
SoundHound AI - SoundHound AI shares saw price target significantly increased by Wedbush from $10.00 to $22.00, with the firm maintaining an Outperform rating on the stock. SoundHound AI gained 2% in premarket trading.
Ford - Ford Motor declined 2% to $10.18 following a downgrade to Underperform from Hold at Jefferies. Analysts also reduced the price target to $9 from $12. “We downgrade Ford to underperform on a combination of earnings pressure and a set of challenging decisions ahead. We acknowledge restructuring actions could trigger positive reactions, but we are concerned about timing and the impact on balance sheet,” Jefferies said in a research note.
Wisekey - WISeKey shares jumped another 6% in premarket trading Monday. The shares more than doubled in value on Friday after the U.S.-listed tech company said a subsidiary would launch a satellite in partnership with Elon Musk's SpaceX.
WeBuy Global - Webuy Global, a Southeast Asian community e-commerce innovator, announced its advancement to the next phase of NVIDIA’s AI Accelerator Program. This milestone reflects Webuy’s commitment to leveraging advanced AI technologies to enhance its offerings and deliver exceptional value to its customers. Webuy Global shares soared 86% in premarket trading.
Checkpoint Therapeutics - Checkpoint Therapeutics shares jumped 12% in premarket trading. The U.S Food and Drug Administration said on Friday it has approved Checkpoint Therapeutics' drug for treatment of a type of cancer on the outer layer of the skin.
Honeywell - Honeywell International said it was considering a potential separation of its aerospace business, about a month after activist investor Elliott Investment Management called for the industrial conglomerate to break itself up. The shares rose 3% in premarket trading.
Market News
Bitcoin Surges Above $106,000 on Strategic Reserve Hopes
Bitcoin surged to a record high above $106,000 on Monday after President-elect Donald Trump suggested he plans to create a U.S. bitcoin strategic reserve similar to its strategic oil reserve, stoking the enthusiasm of crypto bulls.
Bitcoin , the world's biggest and best known cryptocurrency, hit a high of $106,533 and last traded up 3.2% to $104,462. Smaller crypto ether rose 1.5% to $3,965.
Investor sentiment also got a lift from the inclusion of MicroStrategy into the tech-heavy Nasdaq 100 index that will likely lead to more inflows for the software firm turned bitcoin buyer.
Palantir, MicroStrategy, and Axon Enterprise To Join Nasdaq 100
Palantir, MicroStrategy and Axon Enterprise are set to join the Nasdaq 100 Index on Monday, Dec. 23, replacing Super Micro Computer, Moderna, and Illumina, as part of a reconstitution of the index, the Nasdaq said Friday.
It was a big week for the Nasdaq 100, which topped the 20,000 level for the first time ever Wednesday, as tech stocks soared in the wake of inflation data reinforcing expectations of a rate cut by the Federal Reserve next week.
The Nasdaq 100, which contains the 100 largest non-financial sector companies in the Nasdaq Composite Index, is reconstituted annually in December and rebalanced quarterly to weight its constituents by market capitalization.
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