Wall Street's Year-End Jitters: Navigating Tepid Markets and Santa Claus Rally Hopes

Wall Street's indices are set for a lower open at the end of an optimistic holiday week, amid high Treasury yields and cautious trading prior to the new 2025 administration. Market focus is on potential new highs during the Santa Claus rally, despite tepid market sentiment.

Wall Street's main indexes prepared for a lower open on Friday, finishing an optimistic week shortened by the holiday. The positive momentum was driven by expectations around traditionally strong periods for the markets as the year comes to a close.

Yields on U.S. Treasury notes increased, with the benchmark 10-year note reaching its highest in over seven months. Futures for the tech-heavy Nasdaq 100 dipped as major stocks like Nvidia and Tesla fell in premarket trading.

The S&P 500 is targeting its best week in seven sessions as investors anticipate a 'Santa Claus rally,' although cautious sentiment prevails following last week's Federal Reserve projections.

(With inputs from agencies.)