Wall Street Steadies Amid Tech Turbulence: Hopes for a Year-End Rally

U.S. stock index futures stabilized on Tuesday after a sharp decline in tech stocks. Despite recent gains, investor uncertainty persists regarding AI's influence on stocks. Optimism about potential interest rate cuts in 2026 and stabilized mining stocks offer hope for a potential year-end 'Santa Claus rally'.

On Tuesday, U.S. stock index futures found stability after earlier dips triggered by a sell-off in technology stocks, which impacted the major indices.

This comes at the end of a volatile year for Wall Street, where despite notable gains, tech and AI-linked stock declines have left investors cautious. The recently achieved record highs for the S&P 500 and Dow have stirred speculation about a possible 'Santa Claus rally', during which stocks might gain in the year's closing days.

The Federal Reserve's cautious stance on interest rates reflects ongoing economic uncertainties. Meanwhile, the mining sector showed signs of recovery with stocks like Newmont and Barrick seeing premarket gains. As the holiday-shortened trading week progresses, the financial sector remains watchful for shifts that could herald a positive start to 2026.

(With inputs from agencies.)