The S&P 500 is projected to open 0.4% higher on Monday, marking a positive start to the shortened trading week ahead of the winter holiday break. Investors are monitoring key economic data and earnings momentum as market activity slows.
- S&P 500 futures indicate a 0.4% opening gain.
- Apple (AAPL) and Amazon (AMZN) futures up 0.7% and 0.5%, respectively.
- December ISM Manufacturing Index and Beige Book to be closely watched.
- CBOE Volatility Index (VIX) at 13.2, below 100-day average.
- Shortened trading week due to New Year’s Eve holiday.
- Q4 earnings momentum and Fed commentary remain key focal points.
The S&P 500 futures indicate a 0.4% gain at the opening bell, reflecting optimism as traders enter a four-day holiday week. With the New Year’s Eve holiday reducing trading volume, market participants are focusing on high-impact data and corporate updates rather than broad momentum. The advance comes amid a quiet economic calendar, with no major U.S. economic reports due this week. However, the December ISM Manufacturing Index and the Federal Reserve’s Beige Book are expected to be reviewed closely in the immediate post-holiday period. A strong manufacturing report could reinforce expectations for a dovish Federal Reserve shift in early 2026. Stocks in the technology and consumer discretionary sectors are leading pre-market gains, with Apple (AAPL) up 0.7% and Amazon (AMZN) rising 0.5% in futures. These moves follow recent earnings beats from both companies, which reported adjusted EPS of $1.34 and $1.65, respectively, surpassing analyst expectations by 9% and 12%. Market volatility remains subdued, with the CBOE Volatility Index (VIX) trading at 13.2, below its 100-day average. The low volatility environment suggests cautious positioning ahead of the year-end, while investors remain attentive to potential Q4 earnings surprises and Fed commentary in January.