U.S. stock futures edge lower in shortened holiday trading
U.S. stock index futures dipped slightly on Christmas Eve as traders weighed whether markets can sustain recent record gains. The S&P 500 hit a closing record on Tuesday, lifted by megacap tech stocks, amid mixed U.S. economic data.
The economy grew at its fastest pace in two years in Q3, but December consumer confidence fell and November factory production remained flat. Traders are still pricing in two 25-basis-point interest rate cuts by the end of 2026, although odds of a January cut have dropped, News.Az reports, citing Reuters.
Wall Street’s “fear gauge” (VIX) hovered near its lowest level since December 2024, signaling low market volatility. Trading volumes are expected to remain below normal as U.S. markets close early Wednesday and stay shut Thursday for Christmas.
Among individual stocks, Nike rose 2% after Apple CEO Tim Cook bought $3 million in shares. Intel fell 4.6% following reports that Nvidia halted tests on Intel’s 18A chipmaking node. Dynavax Technologies surged 37.9% after French firm Sanofi announced a $2.2 billion acquisition.
Despite short-term volatility, the bull market that began in October 2022 remains intact, supported by optimism around AI, rate cuts, and a resilient economy. All three major U.S. indexes are on track for their third consecutive yearly gain.
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