<cite>Spencer Platt | Getty Images</cite> <div class="caption" data-react-component="NBCTruncate" data-maxlines="2" data-maxlinesmobile="4" data-readmore="Read more" data-text="<p>Traders work on the floor of the New York Stock Exchange on the last day of trading for the year on Dec. 31, 2024 in New York City. </p> " data-ellipsis="false"> </div>
Stock futures were slightly higher as trading got underway for 2025, with hopes that the market can regain the momentum that propelled it to log two-straight years of annual gains above 20%.
Futures tied to the Dow Jones Industrial Average rose 67 points, or 2%, while S&P 500 futures added 13 points, or 0.2%. Nasdaq-100 futures 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 surged 23% last year, while the 30-stock Dow added nearly 13%. Fueled by the enthusiasm around artificial intelligence and interest rate cuts, the Nasdaq Composite outperformed with a 29% advance.
Members of the so-called Magnificent Seven were behind much of the market’s action in 2024. AI chip darling Nvidia notched a 171% gain for the year, while iPhone maker Apple rose 30%. But these big gains led to some profit-taking at the year’s end. The S&P 500 recorded four-straight down days to cap the year — a first since 1966.
All this means, it will be difficult for a “Santa Claus rally” to materialize. That well-known market indicator is usually characterized by rising stocks in the five final days of a calendar year and the first two trading days of January. The broad index rises an average of 1.3% during this period and has finished higher 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 a deadly attack in New Orleans on New Year’s Day that is being investigated as a possible terrorist act. The Federal Bureau of Investigation said it’s possible the suspect, who drove a truck into a crowd, wasn’t “solely responsible” for the incident.
The holiday-shortened week has been light on economic data, but Thursday will bring a look at weekly jobless claims that will offer a read on how the labor market is faring.
Stock futures are higher to begin 2025
Stock futures rose slightly as Wall Street headed into its first day of trading in 2025.
Futures tied to the Dow Jones Industrial Average rose 81 points, or 0.2%, while S&P 500 futures ticked up nearly 16 points, or 0.3%. Nasdaq-100 futures ciimbed 76 points, or 0.4%.
—Christina Cheddar Berk
