Despite the cautious mood, potential factors like a billion-dollar tech merger and the swirling optimism around a spot Bitcoin (CRYPTO: BTC) exchange-traded fund approval, coupled with the spike in oil prices, could inject some buying activity.

Cues From Monday’s Trading:

Monday witnessed a robust advancement in U.S. stocks, driven by a strong rebound in the technology sector, lifting the broader market. Both the S&P 500 Index and the Nasdaq Composite started on a positive note, steadily gaining momentum throughout the session and closing with substantial increases.

US Index Performance On Monday

Analyst Color:

Chris Fasciano, Portfolio Manager at Commonwealth Financial Network, sees opportunities for investors in the new year despite the headwinds. “The good news as we enter 2024 is that a quieter year in interest rates should lead to more opportunities for investors to add value and give more breadth to the market than we have seen recently,” he said.

”But it, too, will come with its own set of uncertainties for portfolio managers as they chart the course ahead,” the analyst said. He, however, remains confident that after several years of volatility within markets, the “opportunity set is broader today than in the recent past,” he added.

Futures Today

Futures Performance On Tuesday

Upcoming Economic Data:

The Commerce Department is scheduled to release the trade balance report for November at 8:30 a.m. ET. Economists, on average, expect the trade deficit to have widened slightly from October’s $64.3 to $65 billion.

Fed Vice Chair for Supervision Michael Barr is due to speak at noon ET.

Also at noon ET, the Energy Information Administration will release its short-term energy outlook report.

The Treasury will auction three-year notes at 1 p.m. ET.

See also: Futures Vs. Options

Stocks In Focus:

Commodities, Bonds, Other Global Equity Markets:

Crude oil futures climbed 1.98% to $72.17 in the early European session on Tuesday following the 4%+ slump in the previous session.

The benchmark 10-year Treasury note climbed 0.044 percentage points to 4.046% on Tuesday.

The major Asian markets ended mostly higher, led by Japan, as traders in the region looked ahead to the key U.S. events scheduled for the week, including the inflation data. Tech stocks in the region followed their Wall Street peers after AI stalwart Nvidia Corp. (NASDAQ:NVDA) ended at a new high.

European stocks traded lower by late-morning trading

In the currency market, the dollar’s strength continued as the greenback edged higher against most major currencies, save the yen. The dollar’s firmness reflected expectations that the Fed may not cut rates until the second half of the year.

Most cryptocurrencies are rallying amid hopes SEC approval for a spot Bitcoin ETF may come as soon as Wednesday. The Bitcoin shot past the $46,500 mark and rose nearly 4.5% over the past 24 hours.

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