The major U.S. index futures are currently pointing to a higher open on Thursday, with stocks likely to begin the new year on an upbeat after slumping in the final days of 2024.
Traders may look to pick up stocks at relatively reduced levels following the notable downward move seen to close out last year.
The S&P 500 and the Nasdaq have closed lower for four straight sessions, with the tech-heavy Nasdaq ending New Year’s Eve trading at its lowest closing level in a month.
Optimism about the outlook for the markets may also generate buying interest ahead of President-elect Donald Trump’s second inauguration later this month.
Trading activity may be somewhat subdued, however, as some traders are likely to remain away from their desks following the New Year’s Day holiday on Wednesday.
On the U.S. economic front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ended December 28th.
Stocks showed a lack of direction early in the session on Tuesday but moved mostly lower over the course of the trading day. The tech-heavy Nasdaq led the downward move, slumping to its lowest closing level in a month.
The Nasdaq slid 175.99 points or 0.9 percent to 19,310.79 and the S&P 500 fell 25.31 points or 0.4 percent to 5,881.63. The narrower Dow posted a more modest loss, edging down 29.51 points or 0.1 percent to 42,544.22.
The weakness that emerged on Wall Street extended the sharp pullback seen over the two previous sessions, as some traders cashed in on this year’s strong gains.
Despite the recent softness, the major averages still posted standout gains for 2024, with the tech-heavy Nasdaq soaring by nearly 30 percent for the year.
The Dow also surged by nearly 13 percent for the year, while the S&P 500 posted its second consecutive yearly gain of more than 20 percent, spiking by more than 23 percent.
Semiconductor and software stocks turned in some of the market’s worst performances on the day, contributing to the decline by the Nasdaq, while oil producer stocks moved higher along with the price of crude oil.
The extended pullback on Wall Street may have reflected concerns about the outlook for the markets in the new year following recent volatility.
Stocks have shown wild swings over the past couple of weeks following the Federal Reserve’s forecast for fewer rate cuts in 2025 earlier this month.
Overall trading activity remained somewhat subdued, however, as some traders looked to get a head start on their New Year’s Eve celebrations.
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