Traders work on the trading floor of the New York Stock Exchange (NYSE) on November 22, 2024 in New York City, the United States.
Brendan McDermid | Reuters
Stock futures were slightly lower in overnight trading Sunday night ahead of the final trading days of 2024.
Dow Jones Industrial Average futures fell 45 points, or 0.1%, while S&P 500 futures edged down 0.06%. Nasdaq 100 futures hovered near the flat line.
Major stock indexes will end the year below record levels, with the S&P 500 and Dow Jones up more than 25% and 14%, respectively, on track for their best year since 2021.
The benchmarks are also set for a fourth quarter of gains, with the Nasdaq expected to post its longest quarterly winning streak since the second quarter of 2021.
Investors hope the stock market will continue to rise into the year-end and New Year period, triggering so-called Santa Claus rallies. This phenomenon refers to the market rising on the last five trading days of the year and the first two trading days of January. Since 1950, the S&P 500 has returned an average of 1.3% over that period, according to LPL Financial.
However, some worry the market may be losing momentum, with some year-end profit-taking following Friday’s losses in major stock indexes.
“I think it’s long overdue,” Raymond James institutional equity strategist Tavis McCourt said Friday on CNBC’s Closing Clock. “I’m going to expect more as we get into January.” Last month, we made a huge push on a small set of names.
This week has ushered in a period of light economic data, with markets closed on Wednesday for New Year’s Day. Chicago PMI and pending home sales data will be released on Monday.
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