Traders work on the trading floor of the New York Stock Exchange on December 10, 2024.
Brendan McDermid | Reuters
Stock futures edged higher in overnight trading Sunday as markets braced for a holiday-shortened trading week.
Dow Jones Industrial Average futures rose about 100 points. S&P 500 futures rose 0.3% and Nasdaq 100 futures rose 0.4%.
Trading is expected to be relatively quiet this week. The New York Stock Exchange closed early at 1 pm (EST) on Christmas Eve and the market was closed on Christmas Day.
Investors are hoping a so-called Santa Claus rally could help markets end 2024 on a strong note, especially after a tumultuous week. Since 1969, the S&P 500 has gained an average of 1.3% over the last five trading days of that year and the first two trading days of January, according to the Stock Trader’s Almanac.
The second half of December is also typically the second strongest period of the year for U.S. stocks, with the S&P 500 rising 83% of the time in December, a presidential election year, according to Bank of America data.
“With the market’s primary uptrend still intact, we are not giving up on the possibility of Santa Claus coming to Broad & Wall this year,” Piper Sandler chief market technician Craig Johnson said in a note.
Markets are on a roller-coaster ride, with the blue-chip Dow Jones Industrial Average suffering a 10-day losing streak, its longest since 1974. point. Lower-than-expected inflation data helped stocks recoup some losses.
So far this month, the 30-stock Dow Jones Industrial Average is down 4.6% in December, while the S&P 500 is down 1.7%. The Nasdaq, which is dominated by technology stocks, bucked the trend and rose 1.8% this month.
On the political front, President Joe Biden signed a government funding bill on Saturday, averting a government shutdown. The bill funds federal agencies at current levels for the next three months.
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