Traders work on the floor of the New York Stock Exchange.
NYSE
Stock futures traded near the flatline Tuesday night after the broad market S&P 500 notched a record close.
Futures tied to the Dow Jones Industrial Average lost 24 points, or 0.05%. S&P 500 futures slipped about 0.05%, while Nasdaq 100 futures were little changed.
Major U.S. indexes climbed for a fourth straight session on Tuesday, led by tech names including Google parent Alphabet, Nvidia, Broadcom and Amazon.
The S&P 500 ended the regular session up about 0.5% and posted a fresh record close of 6,909.79. The index is just below its intraday all-time high of 6,920.34. The Nasdaq Composite gained about 0.6%, and the 30-stock Dow added around 79 points, or nearly 0.2%, to finish the day.
Earlier Tuesday, the Commerce Department issued its a third-quarter reading of the U.S. gross domestic product that came in at 4.3%, surpassing the Dow Jones consensus estimate of 3.2%.The report, which had been delayed by the government shutdown, initially led traders to lower their expectations of interest rate cuts next year. However, fed funds futures trading still indicates two rate cuts by the end of 2026, according to the CME FedWatch Tool.
Investors continue to hope for the coveted Santa Claus rally, referring to a year-end stock market rally that occurs between the last five trading days of the year and the first two of the new year — in this case from the opening bell on Dec. 24 until Jan. 5.
According to LPL Financial chief technical strategist Adam Turnquist, the S&P 500 has averaged a 1.3% return during the Santa Claus rally period, with positive results occurring 78% of the time. The market’s typical seven-day average return is just 0.3% with a positivity rate of 58%, meanwhile, he wrote in a note to clients.
“Momentum heading into year-end suggests a favorable setup for a positive Santa Claus Rally — a historically bullish signal for January and the year ahead,” Turnquist said. “While overall market breadth remains somewhat narrow for an index near record highs, the trend is moving in the right direction, supported by a rotation toward cyclical sectors. A close above the S&P 500’s December high could pave the way for the next leg higher above the 7,000-point milestone.”
On the economic front Wednesday morning, traders will keep an eye out for weekly jobless claims.
The New York Stock Exchange will close early on Wednesday at 1 p.m. ET on Christmas Eve and will be closed Thursday for Christmas Day.