Wall Street’s main indices were on track for a tepid opening in a shortened trading session on Tuesday. US stock markets enter a historically strong period before ending a second consecutive year of gains.
With few important catalysts, the reduced trading volume expected in the last days of the year increases the possibility of market fluctuations.
The trading sessions will close at 3pm (Brasília time) and will remain closed on Wednesday (25th) due to the Christmas holiday.
The S&P 500 and Nasdaq racked up two consecutive trading sessions of gains on Monday, driven by gains from some large-cap and growth companies.
“As the market ended higher yesterday, investors are breathing a sigh of relief, thinking that perhaps last week’s hawkish rate cut, combined with the softer PCE reading, indicates that inflation is not as big a threat at the moment. ,” said Sam Stovall, chief investment strategist at CFRA Research.
After a strong performance that drove indexes to all-time highs following the November election that raised hopes of pro-business policies under U.S. President-elect Donald Trump, Wall Street’s rally hit a hurdle this month as investors dealt with the prospect of higher interest rates in 2025.
The Federal Reserve cut interest rates for the third time this year last Wednesday (18), but signaled two more 25 basis point cuts next year as policymakers weigh whether Trump’s policies will boost inflation.
The Fed is expected to keep rates in the range of 4% to 4.25% until the end of 2025, versus an expectation of 3.75% to 4%, according to the FedWatch tool.
Markets are currently in a historically strong period known as the “Santa Claus rally.” The S&P 500, on average, gained 1.3% in the last five days of December and the first two days of January, according to data from Stock Trader’s Almanac dating back to 1969.
At 10:32 am (Brasília time), Dow Jones futures fell 0.05%. S&P 500 futures rose 0.13% and Nasdaq 100 futures rose 0.24%.
However, market participants question whether U.S. stocks’ climb to new all-time highs will be sustainable in the coming days, amid concerns about excessively high valuations and the overall health of the market.
Among individual stocks, NeueHealth soared 64.7% in premarket trading after the healthcare company announced that its largest shareholder, New Enterprise Associates, along with a group of existing investors, will take the company private in a deal of US$ 1.3 billion.
American Airlines shares fell slightly after the airline temporarily suspended all its flights in the United States due to an unspecified technical problem, affecting the travel plans of thousands of passengers in the middle of Christmas Eve.
