US stock futures remained largely unchanged early Tuesday following a strong opening to the holiday-shortened trading week, CNBC reports.
S&P 500 and Dow Jones Industrial Average futures hovered near the flatline, while Nasdaq 100 futures edged up by 0.04%.
On Monday, the S&P 500 rose by approximately 0.7%, the Nasdaq Composite climbed 1%, and the Dow Jones Industrial Average posted a 0.2% gain. Tech and semiconductor stocks fueled the rally, with Meta Platforms advancing over 2%, Broadcom gaining more than 5%, and Nvidia rising 3.7%.
Elsewhere, Honda shares surged over 12% following news of potential merger talks with Nissan, and Xerox saw similar gains after announcing its acquisition of Lexmark in a $1.5 billion deal.
However, the day’s trading was tempered by weak economic data. The Conference Board’s consumer confidence index dropped to 104.7 in December, below expectations of 113.0, marking its lowest level since September. Additionally, durable goods orders fell 1.1% in November, the largest decline since June.
With markets operating on reduced hours this week, some investors hope for a year-end “Santa Claus rally.” Historically, the S&P 500 has averaged a 1.3% gain during the final five trading days of the year and the first two in January, according to the Stock Trader’s Almanac.
Jay Hatfield, CEO of Infrastructure Capital Advisors, expressed skepticism about significant market movement, predicting only modest gains by year-end.
“We might get a Santa Claus rally, but those aren’t that powerful,” he noted.
The New York Stock Exchange will close at 1 p.m. ET on Tuesday for Christmas Eve, with the bond market following suit at 2 p.m. U.S. markets will remain closed on Wednesday for Christmas Day.
While some sectors like tech have seen gains, the SPDR S&P Retail ETF (XRT) has faced challenges, down over 3% this month. Notable laggards include Signet Jewelers and Foot Locker, both down over 14% in December. Conversely, Ollie’s Bargain Outlet and Five Below have posted strong monthly gains, up nearly 19% and 16%, respectively.
