As traders returned from the Christmas vacation, stock futures showed little fluctuation on Friday. The major averages were positioned for weekly gains, and the market was generally optimistic about the futures market. The futures contract for the S&P 500 experienced a decrease of 0.1%, while the Nasdaq-100 futures contract remained close to the neutral mark. There was a reduction of 75 points in the futures market for the Dow Jones Industrial Average, which is equivalent to a decrease of 0.2%.

The S&P 500 finished the week with a gain of 1.4%, putting it on track to achieve its fourth weekly gain in the past five weeks. On a week-to-date basis, both the Dow and the Nasdaq witnessed positive growth of more than one percent. As a result of the S&P 500 reaching new intraday and closing all-time highs on Wednesday, market is emerging from a session that set a new record for that particular session. Markets in the United States were closed on Thursday in observance of the Christmas holiday.

According to Mark Newton, “2025 is coming to a close with a few more positives than negatives this year.” As the year-end approaches, U.S. equities have largely brushed aside ongoing concerns despite widespread discussion about a potential “AI bubble,” tariff risks, the possibility of another government shutdown, and persistent inflationary pressures.

Investors are also encouraged by historically strong seasonal trends and are looking ahead to a potential Santa Claus rally. This rally typically occurs during the final five trading days of the year and the first two trading days of the new year. According to the Stock Trader’s Almanac, historical data since 1950 shows that the S&P 500 has averaged gains of around 1.3% during this period.