Traders work on the floor of the New York Stock Exchange on December 31, 2024, in New York City, on the last day of trading this year.
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Stock futures rose slightly as trading began for 2025, with hopes that the market could regain momentum for its second consecutive year of more than 20% annual gains.
futures tied to Dow Jones Industrial Average Although it increased by 67 points (2%), S&P500 futures Added 13 points (0.2%). Nasdaq 100 futures It rose by 56 points (0.3%).
Although the stock price fell due to weak trading in late 2024, the year still brought in solid profits. The S&P 500 rose 23% last year, while the Dow 30 rose nearly 13%. Fueled by enthusiasm over artificial intelligence and lower interest rates, Nasdaq Composite Outperformed with 29% improvement.
Members of the so-called “Magnificent Seven” were behind much of the market movement in 2024. AI chip darling Nvidia is up 171% for the year, while iPhone maker Apple is up 30%. However, these large gains led to profit-taking at the end of the year. The S&P 500 recorded its fourth consecutive day of declines, the first of the year since 1966.
If this happens, it will be difficult to hold a “Santa Claus rally.” This well-known market indicator is typically characterized by an increase in stock prices during the last five days of a calendar year and the first two business days of January. Dow Jones market data dating back to 1950 shows that during this period, the broad index rose an average of 1.3% and ended higher almost 80% of the time.
Adding to the pressure may be investors assessing the impact of the deadly attack in New Orleans on New Year’s Day, which is being investigated as a possible act of terrorism. The Federal Bureau of Investigation said the suspect who drove the truck into the crowd may not have been “solely responsible” for the incident.
Economic data has been poor this week due to the shortened holiday season, but weekly jobless claims numbers will be released on Thursday, which will give us an idea of how the labor market is faring.
