U.S. Stock Index Futures Dip as Trading Resumes After Christmas Holiday
Following a shortened trading session on Tuesday, US stock index futures began the week slightly lower on Thursday morning. The New York Stock Exchange closed early on Christmas Eve, and the market was shut on Christmas Day, with reduced volumes expected for the remaining sessions.
The futures market reported losses, with the SP 500 off 0.45% at 6,011.10 points, the Dow Jones down 0.5% at 21,687.50 points, and the Nasdaq 100 declining 0.4% to 43,075.80 points.
Tech stocks, however, led the gains on Tuesday, with the so-called Magnificent 7 experiencing a strong start to the week. Tesla, Apple, Amazon, Meta, and Alphabet, among others, posted significant gains. Chip stocks also added to their gains, with a potential new trade investigation into Chinese-made legacy chips by the Biden administration highlighting ongoing tensions in the global tech supply chain.
Broadcom and Intel Corporation were among the top-performing chip stocks, jumping over 3% and 1%, respectively.
After a week marked by a sharp decline following the Federal Reserve’s projection for fewer rate cuts in 2025, Wall Street recovered on Tuesday. The central bank’s cautious approach to monetary policy adjustments led to a re-evaluation of rate cut expectations, with markets scaling back their projections for further cuts in the coming year.
The S&P 500, Dow Jones, and Nasdaq 100 indexes closed higher on Monday and Tuesday, regaining most of the ground lost the previous week. With reduced trading volumes anticipated in the remaining sessions of the week, investors will continue to monitor market developments and await fresh economic data to shape future market sentiment.