U.S. stock futures are up as we head into a shortened holiday week. Futures for the Dow Jones rose by 83 points, or 0.2%. The S&P 500 and Nasdaq 100 futures followed suit, increasing by 0.2% and 0.3% respectively.
Last week saw a mixed bag on Wall Street. While tech stocks surged late in the week, helping both the S&P 500 and Nasdaq Composite earn small gains, the Dow dropped by 0.7%, breaking its winning streak.
Artificial intelligence stocks are making a comeback. Oracle saw a significant boost after TikTok announced it would sell its U.S. operations as part of a new venture that includes Oracle and private-equity firm Silver Lake. Nvidia’s shares also rose.
Yet, uncertainty lingers. Investors are curious if AI stocks can maintain their momentum as they tend to rotate towards cheaper stocks when tech valuations feel high. Plus, there are doubts about the potential for a “Santa Claus rally,” especially with the S&P 500 struggling at a crucial point.
Justin Bergner, a portfolio manager at Gabelli Funds, commented, “I initially thought we’d see an end-of-year grind, but it looks more like an end-of-year churn.”
Looking back at past years, the market often sees a boost during the holiday season, which makes the current situation more curious. According to a recent survey by Bespoke Investment Group, historically, the S&P 500 tends to rise more than 70% of the time during the last week of December.
As traders get ready for the NYSE’s early closure on Christmas Eve, all eyes remain on the tech sector. Investors are waiting to see if these trends hold up or shift dramatically in the coming weeks.
For more detailed market insights, check out the recent NerdWallet report on stock trends.
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