Futures Point to Higher Open for Major Indexes as Chip Stocks Surge

Major stock indexes are poised to open higher on Monday, adding to the previous session’s solid gains, as shares of chipmakers surge.

Futures tied to the Dow Jones Industrial Average and S&P 500 were up 0.4% and 0.8%, respectively, in recent trading, while those linked to the tech-heavy Nasdaq added 1%. Stocks jumped on Friday to snap a weeklong losing streak. Despite the gains, the S&P 500 posted losses for the week, the third time in four weeks it did so as a post-election rally has lost steam.

Chip stocks were leading the move higher in premarket trading Monday after contract electronics manufacturer Foxconn posted record fourth-quarter revenue driven by the boom in demand for AI technologies. Shares of Taiwan Semiconductor Manufacturing Co. (TSM), ASML Holding (ASML) and Micron (MU) were each up more than 5%. The VanEck Semiconductor ETF (SMH) was up nearly 3%.

Shares of AI chipmaker and investor favorite Nvidia (NVDA) were up nearly 3% ahead of a highly anticipated keynote speech from CEO Jensen Huang, scheduled for Monday evening at a major consumer electronics trade show in Las Vegas.

Other large-cap technology stocks were higher across the board this morning. Tesla (TSLA), which jumped 8% on Friday to break a five-day losing run, was up 2.5% this morning. Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) also gained ground.

Among other noteworthy gainers, Super Micro Computer (SMCI) was up 5% after soaring more than 10% the previous session. Sentiment received a boost after Microsoft announced Friday that it plans to spend about $80 billion this fiscal year on data centers that power AI.

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Shares of MicroStrategy (MSTR), one of the world’s largest holders of bitcoin, were up 3.5% this morning as the company announced it is targeting a capital raise of up to $2 billion to strengthen its balance sheet and buy more bitcoin.

Bitcoin was at $99,300 in recent trading, at its highest level in more than two weeks. The digital currency has gained about 40% since the election on investor hopes that a pro-crypto Trump White House and Congress will adopt policies that benefit the asset class.

The yield on 10-year Treasurys, which is correlated with expectations about where interest rates are headed, was holding steady at 4.60%. Investors are awaiting the release on Friday of the December jobs report for information that could affect the Federal Reserve’s decision on interest rates later this month.

Gold futures were holding steady at around $2,660 an ounce, while crude oil futures were up about 0.5%.