Santa Claus Rally: Will U.S. Stock Markets Deliver Christmas Gains?

U.S. stock index futures experienced a slight decline in thin Christmas Eve trading amid anticipation for the 'Santa Claus rally.' A recent flurry of data showed mixed indicators for the U.S. economy, though past tech stock performance supports optimism. Key announcements include acquisitions and leadership investments.

In a subdued Christmas Eve trading session, U.S. stock index futures dipped marginally, as investors look towards a potential 'Santa Claus rally.' The S&P 500 recently reached a record high on Tuesday, buoyed by strong performances in megacap technology stocks.

Economic data indicates the fastest U.S. economic growth in two years during Q3, although consumer confidence dwindled in December. Despite this, traders continue to anticipate two interest rate cuts by 2026. The U.S. markets are anticipated to experience lower trading volumes as they prepare to close early for the Christmas holiday.

An increase in specific stock activities was noted, with Nike shares rising following a significant purchase by Apple CEO Tim Cook. Additionally, Dynavax Technologies saw a substantial surge after the announcement of its acquisition by Sanofi. UiPath is also set to advance as it joins the S&P Midcap 400 index.

(With inputs from agencies.)