U.S. stock futures exhibited minimal movement on Friday, as traders returned from the Christmas holiday, with major indices positioned for weekly gains. The futures for the S&P 500 indicated a slight decline of 0.1%, while Nasdaq-100 futures hovered around the flatline. Meanwhile, the Dow Jones Industrial Average futures dropped by 75 points, reflecting a decrease of 0.2%.
In reviewing the week, the S&P 500 has risen by 1.4%, placing it on course for its fourth weekly increase in the past five weeks. Both the Dow and Nasdaq have also shown positive trends, each climbing more than 1% week-to-date. This momentum comes on the heels of a record-setting session where the S&P 500 established new intraday and closing all-time highs just prior to the market’s closure on Thursday for the Christmas holiday.
Mark Newton, head of technical strategy at Fundstrat, shared insights into the market’s performance, stating, “2025 is coming to an end with a few more positives than negatives this year.” He noted that despite prevailing concerns surrounding an “AI Bubble,” potential tariff disputes, and instability tied to possible government shutdowns, U.S. stocks have largely disregarded these issues as the year draws to a close.
Additionally, investors are entering a historically robust seasonal phase, with anticipation building around the potential for a Santa Claus rally. This phenomenon traditionally occurs during the last five trading days of the year and the first two of the new year. According to data from the Stock Trader’s Almanac, the S&P 500 has averaged a 1.3% gain during this period since 1950, further contributing to the optimistic outlook among traders as 2025 approaches its conclusion.
