FX.co ★ US Futures Kick Off the New Year Higher

U.S. stock futures experienced an upswing on Friday, ushering in the new year on a positive trajectory as investors aim to build upon the robust gains witnessed in 2025. Over the past year, the S&P 500 achieved a 16.6% increase, while the Nasdaq climbed 20.4%, marking the third consecutive year of significant returns, predominantly fueled by advancements in artificial intelligence and the Federal Reserve’s interest rate reductions. The Dow, meanwhile, recorded a 13.2% rise, somewhat limited by its lesser involvement in large-cap technology sectors. Standout contributors included Palantir Technologies with an impressive gain of 136.40%, AppLovin advancing by 97.15%, Alphabet surging 65.23%, and Nvidia rising 34.84%. However, market momentum was tempered by geopolitical tensions and new U.S. tariffs, which contributed to market volatility. Investors also contended with challenges arising from elevated valuation levels and evolving expectations regarding Federal Reserve monetary policy. Fluctuations in gold and silver prices highlighted year-end portfolio rebalancing and a cautious stance as we move into early 2026. Traders are now preparing for the upcoming release of manufacturing and services PMIs, in addition to the JOLTS data schedule for next week.