Stock futures rose modestly on Wednesday night as global markets began 2025 with a positive outlook. Futures for the Dow Jones Industrial Average climbed by 0.3%, while S&P 500 futures added 0.4%, and Nasdaq-100 futures gained 0.5%.
Despite a weak finish to 2024, where the Nasdaq saw a decline for the fourth consecutive session, the overall performance for the year remained strong. Investors are now watching closely for updates on key stocks, especially Tesla, as it prepares to release its fourth-quarter and full-year delivery numbers.
A Mixed End to 2024, but Strong Yearly Gains
The U.S. stock market ended 2024 with mixed results. The Nasdaq, which had been a standout performer for much of the year, fell 0.9% on the last trading day of the year, nearing important support levels. Despite this, the S&P 500 surged 23.3% in 2024, following a 24.2% gain in 2023, marking its best two-year stretch since the late 1990s. The Dow Jones gained 12.9% in the same period.
In contrast, the small-cap Russell 2000 index saw a modest 0.1% rise, though it struggled to maintain early gains.
Tesla Stock in Focus as Deliveries Approach
Tesla (TSLA) saw its stock drop below a key support level on Tuesday but showed signs of recovery overnight. The electric vehicle (EV) giant is set to report its fourth-quarter and full-year delivery figures early Thursday, January 2. Analysts expect Tesla to have delivered a record 500,000 vehicles in Q4, with total 2024 deliveries exceeding 1.8 million units.
Despite recent price cuts and incentives aimed at boosting demand, Tesla’s growth in China has been strong, while demand in Europe and the U.S. has been softer. While the deliveries report is important, Tesla’s stock has gained in recent months due to optimism surrounding its self-driving technology, AI, and robotics.
Tesla Cybertruck Eligibility for Tax Credit
Tesla’s Cybertruck, which has faced sluggish sales in Q4, is now eligible for a $7,500 tax credit under the IRA, according to a government website. This development could help improve sales, though it has not yet been reflected on Tesla’s official site. Meanwhile, production of the updated Model Y is ramping up at Tesla’s Shanghai plant, and new affordable models are expected to drive further growth in 2025.
Nvidia and CyberArk: Mixed Performances in a Choppy Market
Nvidia (NVDA), another key stock in the market, saw a modest 2.3% drop on Tuesday, falling back below its 21-day moving average. After rising above its 50-day line earlier in the week, the AI chipmaker struggled to hold those gains. Nvidia is currently in a shallow double-bottom base with a buy point of 146.54, with 141.90 seen as an early entry level.
CyberArk Software (CYBR) made a bullish move on Tuesday, but overall, recent stock purchases have struggled in the current choppy market.
Global Manufacturing Data Weakens
Market sentiment was also affected by weaker-than-expected manufacturing data from China. The Caixin China manufacturing index dropped to 50.5, below expectations of 51.7, signaling potential slowdowns in the world’s second-largest economy. This followed a disappointing official Chinese manufacturing report, which also indicated slower growth.
Market Recap: Energy and Treasury Yields
U.S. crude oil prices rose 1% to $71.72 per barrel, marking a slight increase for the year. The 10-year Treasury yield, which has surged significantly over the past year, climbed three basis points to 4.58% on Tuesday.
In ETF markets, growth-focused funds struggled. The Innovator IBD 50 ETF (FFTY) fell 1.8%, while the iShares Tech-Software ETF (IGV) lost 0.8%. The VanEck Vectors Semiconductor ETF (SMH), which holds Nvidia as a major position, dipped by 1%.
Key Takeaways
Stock Futures: Dow, S&P 500, and Nasdaq futures rose slightly, starting 2025 on a positive note.
Tesla Deliveries: Tesla is expected to report strong fourth-quarter delivery figures, with record sales anticipated.
Nvidia Stock: Nvidia faced a slight dip but remains in a key buy zone for investors.
Global Manufacturing: China’s manufacturing data showed signs of weakness, impacting market sentiment.
Oil & Treasury Yields: U.S. crude oil and Treasury yields continue to rise, adding pressure to market dynamics.
