U.S. Stock Index Futures Rise After Election Gains

(Reuters) – U.S. stock index futures rose on Monday, adding to post-election gains as investors anticipated forthcoming economic data that could influence the sustainability of the equity rally.

Stocks that gained following the U.S. election results continued their upward trend. EV maker Tesla surged 7.3% in premarket trading after reaching a $1 trillion market value on Friday for the first time since 2022.

Futures for the small-cap Russell 2000 also rose 1.3%, maintaining their highest level since last November, with this sector poised to benefit from President-elect Donald Trump's proposed tax cuts and an anticipated easier regulatory environment.

Major indexes soared last week as Trump retook the White House, with the S&P 500 achieving its best week in a year, briefly surpassing the 6,000 mark on Friday. The Dow also touched 44,000 points for the first time and recorded its best week in over a year.

Crypto stocks rallied as bitcoin exceeded $81,000 on Monday. Coinbase Global jumped 16.8%, while bitcoin miners Mara Holdings and Riot Platforms gained 19% and 13.7%, respectively.

By 5:28 a.m. ET, Dow E-minis rose 142 points (0.32%), S&P 500 E-minis increased 16.75 points (0.28%), and Nasdaq 100 E-minis were up 54.5 points (0.26%).

Stocks appear solid as the year-end approaches, with the benchmark index up 25% year-to-date, bolstered by enthusiasm over AI and the onset of Fed rate cuts supporting a positive outlook.

Investor focus will shift to consumer price inflation data due Wednesday, alongside other key economic indicators this week influencing the health of the economy and interest rate outlook.

SEB Research analysts stated, "The actual, and expected, economic growth of the United States is the focus of the stock market."

Trump is expected to continuously assess his political actions against the performance of the U.S. stock markets, having already received clear and positive investor confirmation for a growth-focused economic agenda for the United States.

The Federal Reserve cut interest rates by 25 basis points last week, with investors anticipating a 68.5% chance of a similar move at its December meeting, according to CME FedWatch.