Traders on the floor of the New York Stock Exchange in New York City observed a rise in U.S. stock futures on Sunday night in anticipation of a shortened holiday week. Investors are currently weighing the potential for technology stocks to regain momentum as the year draws to a close.
Futures for the Dow Jones Industrial Average increased by 83 points, reflecting a 0.2% gain. Similarly, S&P 500 futures and Nasdaq 100 futures also saw upward movement, rising by 0.2% and 0.3%, respectively. This positive outlook comes after a week characterized by mixed performances among the major averages. A late surge in tech stocks bolstered the S&P 500 and Nasdaq Composite, marking their third weekly gain in four, with increases of 0.1% and 0.5%, respectively. In contrast, the Dow, which had shown strong performance earlier in the month, fell by 0.7%, snapping a three-week winning streak.
Last week saw a revival in artificial intelligence stocks, which had previously lagged. Notably, shares of Oracle surged after TikTok announced a deal to sell its U.S. operations to a new joint venture involving the software company and private-equity firm Silver Lake. Nvidia also experienced a rebound. However, investors remain cautious about whether AI stocks can maintain their leadership role as the year ends, especially given a broader market shift towards more affordable investments amid concerns over high tech valuations.
Uncertainty also lingers regarding the potential for a “Santa Claus rally,” as the S&P 500 faces challenges in sustaining a key technical level. “My view a couple of weeks ago was an end-of-year grind,” remarked Justin Bergner, a portfolio manager at Gabelli Funds. “And I think that’s become an end-of-year churn.”
In light of the holiday week, the New York Stock Exchange plans to close early on Wednesday at 1 p.m. ET in observance of Christmas Eve and will remain closed on Thursday for Christmas Day. Traders will be closely monitoring market trends as they navigate the last weeks of the year.
