On Wednesday, stock futures hovered around the flatline following the S&P 500’s achievement of a record close. Futures associated with the Dow Jones Industrial Average experienced a decline of 25 points, representing a decrease of 0.1%. S&P 500 futures declined approximately 0.1%, mirroring the movement in Nasdaq-100 futures. Major U.S. indexes experienced an upward trajectory for the fourth consecutive session on Tuesday, primarily driven by technology firms such as Google parent Alphabet, Nvidia, Broadcom, and Amazon.
The S&P 500 concluded the regular session with an increase of approximately 0.5%, achieving a new record close at 6,909.79. The index currently stands just shy of its intraday all-time high of 6,920.34. The Nasdaq Composite experienced an increase of approximately 0.6%, while the 30-stock Dow rose by about 79 points, translating to nearly 0.2%, by the end of the trading session. Earlier Tuesday, the Commerce Department released its third-quarter reading of the U.S. gross domestic product, which registered at 4.3%, exceeding the consensus estimate of 3.2%.
The report, delayed due to the government shutdown, prompted traders to adjust their expectations regarding interest rate cuts in the early part of next year. Nonetheless, the trading of fed funds futures continues to suggest two rate cuts by the conclusion of 2026, as per reports. Investors maintain optimism for the anticipated Santa Claus rally, a year-end stock market increase that typically transpires during the final five trading days of the year and the initial two of the following year — specifically from the opening bell on Dec. 24 through Jan. 5.
Adam Turnquist notes that the S&P 500 has historically delivered an average return of 1.3% during the Santa Claus rally period, achieving positive outcomes 78% of the time. The market’s average return over a seven-day period stands at a modest 0.3%, accompanied by a positivity rate of 58%, as noted in his communication 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 stated. “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 December high of the S&P 500 could facilitate the next upward movement beyond the 7,000-point threshold. On the economic front Wednesday morning, market participants will monitor weekly jobless claims. The New York Stock Exchange is set to close early on Wednesday at 1 p.m. in observance of Christmas Eve, and it will remain closed on Thursday for Christmas Day.