Santa Claus Rally Spurs Optimism in U.S. Stocks

U.S. stock index futures rose on Monday following a last-minute government funding bill that avoided a shutdown and amid optimism about inflation cooling. The government's spending legislation passed just in time, preventing disruptions. The major stock indexes recovered on inflation reports, warming expectations for interest rate cuts in 2025.

In a positive start to the week, U.S. stock index futures edged upwards on Monday. This upward trend follows Congress's late-night approval of a government funding bill, successfully averting a shutdown that could have led to major disruptions.

The move comes just after a key inflation report showed signs of cooling, which brought relief to investors worried about interest-rate cuts. The Federal Reserve had previously revised its interest rate cut outlook to two from four in 2025, suggesting a robust economic outlook.

In corporate news, Qualcomm saw a 3% premarket rise after a favorable jury decision, while Rumble's shares surged significantly with a new major investment. Trading, expected to slow down this week due to holiday closures, comes amid historically favorable conditions for U.S. stocks, highlighted by the 'Santa Claus Rally' effect.

(With inputs from agencies.)