Traders take action on the last day of annual trading on the New York Stock Exchange on December 31, 2024 in New York City.
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Stock futures edged higher as 2025 trading began, on hopes the market can regain the momentum that has propelled it to two consecutive annual gains of more than 20%.
Futures and Dow Jones Industrial Average rose 67 points, or 2%, while S&P 500 Index Futures An increase of 13 points, or 0.2%. Nasdaq 100 Futures It rose 56 points, or 0.3%.
Although stocks fell in weak trading in the final days of 2024, the year still produced solid returns. The S&P 500 rose 23% last year, while the 30-stock Dow Jones Industrial Average rose nearly 13%. Fueled by artificial intelligence and enthusiasm for interest rate cuts, Nasdaq Index Outperformed the market, rising 29%.
Members of the so-called “Big Seven” are behind much of the market’s moves in 2024. But these huge gains led to some profit-taking at the end of the year. The S&P 500 has fallen for four consecutive days this year for the first time since 1966.
All this means, “Santa Claus Rally” accomplish. This well-known market indicator typically features stock gains during the last five trading days of the year and the first two trading days of January. The composite has gained an average of 1.3% over that period, rising almost 80% of the time, according to Dow Jones market data going back to 1950.
Adding to the pressure, investors may be assessing the impact of the following factors: Deadly attack in New Orleans The incident on New Year’s Day is being investigated as a possible act of terrorism. The FBI said the suspect who drove the truck into the crowd may not be “solely responsible” for the incident.
There will be less economic data in the holiday-shortened week, but weekly jobless claims will be released on Thursday, which will help provide a sense of how the labor market is doing.
