S&P500 Forecast: Nvidia Powers Gains – Can US Indices Sustain the Momentum?

S&P 500 Futures Extend Gains on Nvidia Rally and M&A Activity

S&P 500 futures advanced for the third consecutive day on Tuesday, bolstered by a strong performance from Nvidia and fresh merger activity in the tech space.

At 14:08 GMT, Dow Futures are trading 43105.00, up 123.00 or +0.29%. S&P 500 Index Futures are trading 6036.00, up 15.50 or +0.26% and Nasdaq 100 Index Futures are at 21769.75, 25.25 or +0.12%.

Nvidia shares rose 2.5% in premarket trading after the company introduced new PC chips powered by Blackwell architecture, lifting the stock to record highs. The unveiling of gaming chips at CES in Las Vegas further fueled gains, strengthening investor confidence in Nvidia’s expansion across AI and gaming markets.

Meanwhile, Tesla dipped 2% following a Bank of America downgrade to neutral, citing valuation concerns and execution risks in the electric vehicle maker’s forward strategy.

Chip stocks broadly benefited from Monday’s market gains, driven by Foxconn’s record-breaking fourth-quarter revenue. Additionally, market sentiment improved following reports that former President Trump’s anticipated tariff policies might be less aggressive than initially feared. Trump later countered the report, adding to market uncertainty.

Volatility remains a watchword for traders as economic data releases approach. The Job Openings and Labor Turnover Survey (JOLTS) arrives Tuesday, followed by the ADP private payrolls report on Wednesday. The pivotal December nonfarm payrolls report is due Friday. Thursday’s trading pause for the observance of former President Jimmy Carter’s memorial compresses the trading schedule.

Which Stocks Are Leading the Market Pre-Bell?

Getty Images and Shutterstock shares soared following the announcement of a $3.7 billion merger. Getty shares surged 45%, while Shutterstock added 24% premarket. The combined entity will operate under the Getty name, with Getty Images CEO Craig Peters at the helm. Shareholders of Shutterstock have the option to receive $28.85 per share in cash, Getty stock, or a combination of both.

Market Outlook

While Nvidia and the Getty-Shutterstock merger signal bullish sentiment in tech, the broader market is treading carefully as economic reports loom. Traders are positioning cautiously ahead of Friday’s nonfarm payroll data, which could drive significant price action. Expect the market to respond to economic indicators, with chip stocks continuing to provide upward pressure, while broader indices face headwinds from sector-specific weaknesses.

More Information in our Economic Calendar.