Tesla, Crypto Exchanges May Lead Early Upward Move On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Monday, with stocks likely to extend the surge seen late in last Friday's session.

The markets may benefit from an early upward move by shares of Tesla (TSLA), as the electric vehicle maker is jumping by 2.9 percent in pre-market trading.

The advance by Tesla comes after Morgan Stanley's Adam Jonas named the stock his top automotive pick and said recent weakness creates an "attractive entry point."

Crypto exchanges, such as Coinbase (COIN) and Robinhood (HOOD), may also help lead the markets higher after President Donald Trump announced the creation of a strategic crypto reserve for the U.S.

Buying interest may be somewhat subdued, however, as concerns about Trump's tariffs on Mexico, Canada and China continue to weigh on the markets.

During an appearance on Fox News over the weekend, Commerce Secretary Howard Lutnick described the proposed 25 percent tariffs on imports from Mexico and Canada as "fluid" but said the additional 10 percent tariff on imports from China is "set."

Following the significant pullback seen over the course of the previous session, stocks saw substantial volatility during trading on Friday. The major averages swung wildly back and forth across the unchanged line before eventually closing sharply higher.

The major averages showed strong moves to the upside going into the close, ending the session near their best levels of the day. The Nasdaq surged 302.86 points or 1.6 percent to 18,847.28, the S&P 500 shot up 92.93 points or 1.6 percent to 5,954.50 and the Dow jumped 601.41 points or 1.4 percent to 43,840.91.

Despite the late-day rally, the Nasdaq plunged by 3.5 percent for the week and the S&P 500 slumped by the 1.0 percent. The narrower Dow, on the other hand, posted a 1.0 percent weekly gain.

Stocks moved mostly higher early in the session as traders looked look to pick up stocks at reduced levels following recent weakness, which saw the Nasdaq tumble to a nearly four-month closing low in Thursday's session.

The Dow and the S&P 500 also ended the previous session at their lowest closing levels in over a month amid a slump by shares of Nvidia (NVDA).

Buying interest was also generated in reaction to a Commerce Department report showing closely watched readings on U.S. consumer price inflation increased in line with economist estimates in the month of January.

However, the major averages pulled back well off their best levels and into negative territory in mid-day trading, as a meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy devolved into a shouting match.

The heated exchange came as Trump and Zelenskyy met to discuss a deal on Ukraine's critical rare earth minerals in exchange for continued aid.

The back-and-forth, which also involved Vice President JD Vance, became increasingly tense as the leaders discussed Trump's approach to ending the war between Russia and Ukraine.

Towards the end of the exchange, Trump suggested Ukraine would be left to fend to for itself if they are unwilling to reach a peace deal.

In a statement posted on Truth Social following the dustup, Trump claimed "Zelenskyy is not ready for Peace if America is involved" and accused the Ukrainian leader of disrespecting the U.S.

Nonetheless, buying interest re-emerged in the latter part of the session, leading to the sharply higher close by the major averages.

Natural gas stocks moved sharply higher despite a steep drop by the price of the commodity, resulting in a 2.1 percent spike by the NYSE Arca Natural Gas Index.

Substantial strength was also visible among banking stocks, as reflected by the 2.1 percent surge by the KBW Bank Index.

Semiconductor, retail and utilities stocks also moved significantly higher over the course of the session, while computer hardware stocks saw considerable weakness on the day.

A steep drop by NetApp (NTAP) weighed on the computer hardware sector, with the data infrastructure company plunging by 15.6 percent after reporting weaker than expected fiscal third quarter revenues and providing disappointing fiscal fourth quarter earnings guidance.

Commodity, Currency Markets

Crude oil futures are rising $0.39 to $70.15 a barrel after falling $0.59 to $69.76 a barrel last Friday. Meanwhile, after plunging $47.40 to $2,848.50 an ounce in the previous session, gold futures are jumping $36 to $2,884.50 an ounce.

On the currency front, the U.S. dollar is trading at 151.01 yen versus the 150.63 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0474 compared to last Friday's $1.0375.

Asia

Asian stocks advanced on Monday as new PMI data suggested Chinese manufacturing had a solid start to 2025 and European leaders pledged to assemble a "coalition of the willing" to develop a plan for ending Ukraine's war with Russia.

On the trade front, speculation swirled over exactly what U.S. President Donald Trump has planned on new tariffs that will come into force beginning Tuesday.

U.S. Commerce Secretary Howard Lutnick said that Canada and Mexico had done a "reasonable job" securing their borders, but fentanyl continues to flow into the U.S.

That is a fluid situation and the President will determine whether to stick with the planned 25 percent level, Lutnick told the Fox News program Sunday Morning Futures. However, Trump is expected to raise tariffs on China on Tuesday as scheduled.

Gold inched higher in Asian trading on dollar weakness after a slew of data signaled a weakening U.S. economy. Oil ticked higher on improved China data and increasingly unclear prospects for peace in Ukraine.

China's Shanghai Composite Index slipped 0.1 percent to 3,316.93 as upbeat factory activity data was offset by tariff worries.

China's top policymakers will gather in Beijing this week for the annual "two sessions," the country's biggest political event, where GDP growth and inflation targets are set to be unveiled alongside steps to boost domestic consumption.

Hong Kong's Hang Seng Index rose 0.3 percent to 23,006.27 as reports emerged that China is considering retaliatory measures on U.S. agriculture and food products if the U.S. insists on pursuing its own path on tariffs.

South Korean markets were closed for a public holiday. Japanese markets rallied after long-term U.S. Treasury yields fell amid receding prospects of higher inflation.

In addition, Japan's manufacturing sector saw a slight improvement in February, with PMI finalized at 49.0, up from 48.7 in January.

The Nikkei 225 Index jumped 1.7 percent to 37,785.47 after plunging to a five-month low late last week. The broader Topix Index settled 1.8 percent higher at 2,729.56.

Australian markets rose notably after data showed the country's manufacturing activity rose to its highest level in two years in February and a key inflation gauge declined in the month.

The benchmark S&P/ASX 200 Index climbed 0.9 percent to 8,245.70, with property developers, telecoms and the tech sector leading the way. The broader All Ordinaries Index closed up 0.9 percent at 8,478.80.

Across the Tasman, the benchmark S&P/NZX-50 Index fell 0.4 percent to 12,550.05.

Europe

European stocks have moved notably higher on Monday as defense stocks climb amid the prospect of higher defense spending in Europe to deter Russian aggression.

Media reports suggest that Germany could approve a fund to boost defense spending before the outgoing parliament steps down next month.

Traders also shifted focus to the European Central Bank meeting due on Thursday, with economists expecting another 25-basis point rate cut.

The German DAX Index is up by 2.7 percent, the French CAC 40 Index is up by 1.5 percent and the U.K.'s FTSE 100 Index is up by 0.9 percent.

Rio Tinto shares were half a percent higher. The mining major said its East Intercourse Island facility at Dampier Port has resumed operations after flooding from Tropical Cyclone Sean.

ING Groep NV gained half a percent after it agreed to acquire a minority stake in Dutch private bank Van Lanschot Kempen N.V.

J Sainsbury fell more than 1 percent. The U.K. supermarket chain said it has completed the sale of its Argos Financial Services store card portfolio to NewDay Group.

U.S. Economic News

The Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of February at 10 am ET. The manufacturing PMI is expected to edge down to 50.5 in February from 50.9 in January, but a reading above 50 would still indicate growth.

Also at 10 am ET, the Commerce Department is due to release its report on construction spending in the month of January. Construction spending is expected to remain unchanged in January after climbing by 0.5 percent in December.

At 11:30 am ET, St. Louis Federal Reserve President Alberto Musalem is scheduled to speak on the U.S. economy and monetary policy and participate in a moderated conversation before the National Association for Business Economics 41st Annual Economic Policy Conference.