Overview
- U.S. stock futures ticked lower premarket, with the S&P 500 down about 0.25%, the Nasdaq off 0.48% and the Dow edging 0.02% lower as big tech names such as Nvidia, Tesla, Palantir and Micron traded weaker.
- Major indexes sit at or near records into the final trading days of December, with the S&P 500 hovering just below the 7,000 mark after a Santa Claus rally that produced five straight daily gains last week.
- For 2025 to date, the Nasdaq is up roughly 19.6%, the S&P 500 about 16% and the Dow Jones around 13.3%, reflecting broad year-end strength despite thin holiday volumes.
- Policy support remains a key pillar after Fed rate cuts began on September 17, quantitative tightening was halted from December 1 and roughly $40 billion in liquidity was injected starting December 12.
- A strong 3Q GDP print of 4.3% contrasts with softer labor conditions as unemployment rose to 4.6%, while investors still price further rate cuts and maintain heavy exposure to AI-linked stocks.