US Stocks Open Higher Amid Strong Job Market and Trade Worries
US stock futures are signaling a modest rally this morning, with E-mini S&P 500 contracts up 0.3%, as investors weigh robust economic data against renewed trade tensions. Weekly initial jobless claims fell to 198,000, and continuing claims remain at 1.884 million, reinforcing a resilient labor market and improved job security for American households.
Meanwhile, the White House is considering 25% tariffs on select semiconductors, stirring fresh concerns in the tech sector. Despite this, semiconductor futures are climbing 1.6%, highlighting the tug-of-war between growth optimism and trade policy risks.
Top Movers: Tech and Energy Shine
Some names are already outperforming:
KLA (KLAC) surged 7.70% after multiple analysts raised ratings and price targets, cementing confidence in chip equipment demand.
Vistra (VST) climbed 6.63% thanks to long-term PPAs and growth-focused analyst commentary.
Coherent (COHR) rose 6.44% on new product launches and bullish outlooks for demand.
Investors are asking: is Coherent a genuine growth play or just short-term hype? Analysts point to fundamental demand drivers as the key factor.
On the flip side, several high-profile names are under pressure:
Circle Internet Group (CRCL) dropped 9.67%
Reddit (RDDT) slid 9.36% following regulatory scrutiny of social media peers
Robinhood Markets (HOOD) fell 7.79%, dragged by volatility in crypto markets
Despite the pullbacks, the long-term story for Robinhood remains centered on crypto integration, retail adoption, and regulatory navigation.
On the Radar: Earnings, Inflation, and Global Data
Investors are keeping a close eye on multiple key events this week:
US Regional Banks: PNC (PNC), Regions Financial (RF), M&T Bank (MTB) report Q4 results, highlighting lending trends and deposit costs
Custody & Asset Servicing: State Street (STT) Q4 earnings provide an early read on fee income
China Macro Pulse: GDP, industrial production, and retail sales on Monday will guide global demand expectations
China Property & Investment: House prices, fixed asset investment, and FDI updates signal capital spending appetite
Canada CPI: Core and headline CPI numbers will influence Bank of Canada policy and cross-border rate differentials
The Big Picture
The market faces a delicate balancing act: solid economic data and corporate earnings support equities, while tariff risks and higher interest rates could pressure sectors like semiconductors and exporters.
For traders, this is a prime moment to focus on undervalued stocks based on cash flows, watch top movers for momentum, and assess broader macro signals before making significant bets.