S&P500 Forecast: Stock Futures Edge Up as Chewy and Block Gain, U.S. Steel Drops

Stock Futures Inch Higher After Volatile Start to 2025

U.S. stock futures ticked up Friday after a rocky kickoff to the year. At 14:12 GMT, Dow Jones Industrial Average futures are up 117 points, or 0.27%. S&P 500 and Nasdaq-100 futures gained 0.27% and 0.3%.

Markets opened January with heavy swings as investors took profits from 2024 gainers like Apple and Tesla. The Dow dropped over 150 points Thursday, reversing a 300-point intraday rise. The S&P 500 and Nasdaq Composite each shed 0.2%.

December capped a strong 2024 with a 2.5% pullback in the S&P 500, erasing part of the year’s 23% gain. The absence of the typical “Santa Claus rally” reflected caution, with markets logging four straight losing days to end the year—a first since 1966.

Steel Sector: Biden Blocks U.S. Steel Deal

U.S. Steel shares tumbled nearly 8% after President Biden rejected the company’s $14.9 billion takeover by Japan’s Nippon Steel. Biden cited national security concerns, emphasizing the need for domestic control of key steel producers.

The decision reinforced the administration’s focus on protecting strategic industries. The move signals potential volatility for companies in sectors tied to national security interests.

Fintech and E-commerce: Block, Carvana, and Chewy in Focus

Block shares jumped 3% after Raymond James upgraded the stock to outperform. Analysts highlighted attractive valuations and growth in seller payment volumes as catalysts heading into 2025.

Carvana slipped over 2% following a short-seller report by Hindenburg Research, alleging the company’s turnaround is propped up by unstable loans and accounting irregularities.

Chewy climbed 2% after Wolfe Research upgraded the stock to outperform and named it a top 2025 pick. Growth in Chewy Health and international expansion were cited as key drivers.

Travel and Energy: Las Vegas Sands and Constellation Rise

Las Vegas Sands rose more than 3% after Jefferies upgraded the stock to buy. Analysts pointed to improving conditions in Macau, which could drive growth in the coming months.

Constellation Energy added nearly 2%, continuing gains from Thursday’s announcement of $1 billion in nuclear power contracts with the U.S. government.

Market Outlook: Pressure Remains Despite Gains

While futures posted modest gains, markets remain under pressure. The lack of a late-year rally and weak December suggest headwinds for January.

Analysts point to high Treasury yields and a strong dollar as limiting stock upside. Without fresh economic catalysts or improved sentiment, volatility is expected to persist in early 2025.

More Information in our Economic Calendar.