US stock futures were mixed on Tuesday ahead of a shortened trading session due to Christmas Eve.
The stock market will close early at 1:00 pm ET, while the bond market will shut at 2:00 pm ET.
Both markets will remain closed on December 25 for Christmas.
At the time of writing, Dow Jones Futures were flat, S&P 500 Futures rose 4 points, and Nasdaq 100 Futures were up 28 points (0.13%).
The major indices began the holiday-shortened week on a positive note after a recent dip triggered by the Federal Reserve’s cautious stance on monetary policy.
The Fed’s decision to project fewer-than-expected rate cuts in 2025 led to a selloff in all three major indices last week.
While the Fed has signaled a cautious approach, noting the need for further inflation progress before considering rate cuts, sentiment improved after the PCE price index—its preferred inflation measure—rose slower than expected in November.
Despite signs of cooling, inflation remains above the Fed’s 2% target, keeping pressure on monetary policy.
Hopes are alive for a Santa Claus rally to cap off what has already been a strong year for the market.
According to the Stock Trader’s Almanac, the S&P 500 has gained an average of 1.3% during the last five trading days of the year and the first two in January, based on data dating back to 1969.
Asian markets end mixed
Asian stock markets moved within a tight range on Monday, closing mostly higher.
China and Hong Kong saw strong rallies following China’s Finance Ministry’s announcement to increase public spending, focusing on stimulating domestic demand growth in 2025.
The Shanghai Composite surged 1.26% to close at 3,393.53, while Hong Kong’s Hang Seng Index climbed 1.08% to 20,098.29.
In Japan, the Nikkei 225 fell 0.32% to 39,036.85, weighed down by concerns over exchange rate volatility, with Finance Minister Katsunobu Kato reiterating discomfort with excessive foreign exchange moves.
South Korea’s Kospi ended slightly lower, losing 0.2% to close at 2,440.52, amid concerns over political instability and weak consumer sentiment data, which showed the sharpest decline in more than two years.
Australian markets edged up modestly, with the ASX 200 rising 0.24% to 8,220.90, led by gains in the tech and energy sectors.
Indian equities ended the volatile session lower ahead of the Christmas holiday.
The benchmark Sensex hit an intra-day high of 78,877.36 before reversing course to end the session down 67.30 points, or 0.09%.
European markets in green
European stocks edged higher in cautious trade on Tuesday as markets prepared for the Christmas break.
The German DAX is closed for trading today, while the FTSE 100 and CAC 40 are scheduled for early closures on Christmas Eve.
Markets in the UK, Germany, Spain, and France will remain shut on Wednesday and Thursday for the Christmas holiday.
The pan-European STOXX 600 rose 0.4% to 503.94.
The benchmark FTSE 100 was up 24 points, or 0.5%, at 8,144.99.
The French CAC 40 was also trading 0.56% higher at 7,313.11.
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