The major U.S. index futures are currently pointing to a modestly lower open on Tuesday, with stocks likely to give back ground after moving notably higher over the past few sessions.
Traders may look to cash in on the recent strength in the markets, which saw the major averages rebound strongly after slumping early last week.
Tech stocks like Oracle (ORCL), Nvidia (NVDA) and Micron Technology (MU) helped lead the recovery but are moving back to the downside in pre-market trading.
The futures edged lower following the release of a Commerce Department report showing the U.S. economy grew by much more than expected in the third quarter of 2025.
The Commerce Department said real gross domestic product spiked by 4.3 percent in the third quarter after surging by 3.8 percent in the second quarter. Economists had expected GDP to jump by 3.3 percent.
The much stronger than expected economic growth may lead to renewed uncertainty about the outlook for interest rates.
Meanwhile, the Commerce Department released a separate report showing new orders for U.S. manufactured durable goods tumbled by more than expected in the month of October.
Extending the strong upward move seen over the two previous sessions, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside on the day following the mixed performance seen in the previous week.
The major averages finished the day off their highs of the session but still firmly in positive territory. The Dow rose 227.79 points or 0.5 percent to 48,362.68, the Nasdaq climbed 121.21 points or 0.5 percent to 23,428.83 and the S&P 500 advanced 43.99 points or 0.6 percent to 6,878.49.
The markets continued to benefit from strength among technology stocks, which helped lead the way higher last Thursday and Friday.
Shares of Oracle (ORCL) surged by 3.3 percent after Wells Fargo reiterated its Overweight rating on the software giant's stock.
AI darling and market leader Nvidia (NVDA) also saw further upside after a report from Reuters said the company has told Chinese clients it aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February.
Overall trading activity appeared somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Some traders may also be away from their desks as they look to get a head start on the Christmas Day holiday on Thursday.
Reports on durable goods orders, third quarter GDP, industrial production and consumer confidence are still likely to attract attention on Tuesday.
Gold stocks saw substantial strength as the price of the precious metal soared to new record highs driving the NYSE Arca Gold Bugs Index up by 3.3 percent to a record closing high.
Significant strength was also visible among airline stocks, as reflected by the 1.7 percent gain posted by the NYSE Arca Airline Index.
Steel, networking and telecom stocks also saw notable strength, moving higher along with most of the other major sectors.
Commodity, Currency Markets
Crude oil futures are rising $0.15 to $58.16 a barrel after surging $1.49 to $58.01 a barrel on Monday. Meanwhile, after spiking $82.10 to $4,469.40 an ounce in the previous session, gold futures are jumping $46.70 to $4,516.10 an ounce.
On the currency front, the U.S. dollar is trading at 156.10 yen compared to the 157.05 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1786 compared to yesterday's $1.1760.
Asia
Asian markets extended gains on Tuesday against the backdrop of renewed optimism around AI-related shares that fueled a rally on Wall Street. Expectations of further monetary easing by the Federal Reserve also supported sentiment.
China's Shanghai Composite Index crept up 0.1 percent to finish trading at 3,919.98, versus the previous close of 3,917.36. The day's trading ranged between 3,910.74 and 3,937.13.
The Japanese benchmark Nikkei 225 Index inched up less than a tenth of a percent to 50,412.87. The day's trading range was between 50,264 and 50,572.
Mercari, Rakuten, Shionogi, all gained more than 3 percent. Mazda Motor, Subaru Corp., JTEKT Corp., Fanuc Corp. and Sumitomo Electric Industries all declined more than 2 percent.
The Korean Stock Exchange's Kospi Index increased 0.3 percent to close trading at 4,117.32. The day's trading range was between 4,110.25 and 4,140.84.
The Hang Seng Index of the Hong Kong Stock Exchange edged down 0.1 percent from the previous close to finish trading at 25,774.14. The day's trading range was between a high of 25,927.66 and a low of 25,726.45.
Australia's S&P/ASX200 Index closed trading at 8,795.70, jumpinh 1.1 percent from the previous close of 8,699.90. The day's trading range was between 8,699.90 and 8,805.50.
Aerospace business DroneShield topped gains with a surge of 9 percent followed by Goodman Group that rallied 8.2 percent. Austal also gained more than 6 percent.
Eagers Automotive topped losses with a decline of 2.7 percent. EVT, Capricorn Metals, Perseus Mining and Megaport all shed more than 1 percent in the day's trading.
The NZX 50 Index of the New Zealand Stock Exchange added 0.1 percent to close trading at 13,517.73, versus the previous close of 13,508.30. The day's trading ranged between 13,488.28 and 13,549.20.
Synlait Milk topped gains with a surge of 6.5 percent. KMD Brands as well as Tourism Holdings rallied more than 3.5 percent.
Fletcher Building topped losses with a decline of almost 4 percent. Skycity Entertainment, Fonterra Shareholders Fund and Contact Energy declined more than 2 percent.
Europe
European stock markets are trading on a mixed note on Tuesday as markets weigh the monetary policy outlook from the Fed and also brace for the updates on economic performance.
U.K.'s FTSE 100 is trading 0.01 percent below the previous closing level of 9,865.97. It is currently trading at 9,864.80. In the 100-scrip index, 55 scrips are in positive territory.
France's CAC 40 index's current level of 8,103.65 is 0.21 percent below the previous close of 8,121.07. Of the 40 scrips in the index, 10 are trading above Monday's levels.
Germany's DAX is currently trading at 24,321.12, after adding 0.10 percent from Monday's close of 24,296.15. Of the 40 scrips in the index, 21 have advanced from the previous day's levels.
Switzerland's Stock Market Index has gained 0.74 percent from the previous close of 13160.86 and is currently trading at 13,257.60.
The pan-European Stoxx 600 added 0.23 percent from previous close of 586.74 and is currently trading at 588.08.
The EUR/USD pair is currently hovering near 1.1792 whereas the GBP/USD pair is near a 3-month high of 1.3504. The USD/CHF pair is at 0.7874.
European markets had closed on a mildly negative note on Monday amidst cautious sentiment and fears over valuation of tech stocks.
U.S. Economic News
Reflecting a steep drop in orders for transportation equipment, the Commerce Department released a report on Tuesday showing new orders for U.S. manufactured durable goods tumbled by more than expected in the month of October.
The report said durable goods orders plunged by 2.2 percent in October after climbing by an upwardly revised 0.7 percent in September.
Economists had expected durable goods orders to slump by 1.5 percent compared to the 0.5 percent increase that had been reported for the previous month.
Excluding the nosedive by orders for transportation equipment, durable goods orders crept up by 0.2 percent in October after rising by 0.7 percent in September. Ex-transportation orders were expected to rise by 0.3 percent.
A separate report released by the Commerce Department on Tuesday showed the U.S. economy grew by much more than expected in the third quarter of 2025.
The stronger than expected GDP growth in the third quarter reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in investment.
At 9:15 am ET, the Federal Reserve is scheduled to release its report on industrial production in the month of November. Industrial production is expected to inch up by 0.1 percent.
The Conference Board is due to release its report on consumer confidence in the month of December at 10 am ET. The consumer confidence index is expected to rise to 91.9 in December after falling to 88.7 in November.
At 1 pm ET, the Treasury Department is scheduled to announce the results of this month's auction of $70 billion worth of five-year notes.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.