U.S. stock futures dropped early Monday to kickoff December despite a rally at November-end to close the final day of the month in positive territory. Still, Nasdaq was -1.6% in November and S&P 500 was flat.
As of 4:34 P.M. (GMT+7), the Dow Jones Industrial Average futures declined by 0.36%, or 169.70 points, to 47,546.70 points. S&P 500 contracts lost 0.51%, or 35.10 points, to 6,814.00 points, while Nasdaq 100 futures fell 0.63%, or 160.70 points, to 25,274.20 points.
The pullback comes after equities recorded notable holiday-shortened weekly gains. Last week, the S&P 500 rallied 3.7% and the Nasdaq Composite climbed nearly 5%, rebounding from volatile trading in November. The Dow advanced 3.2%.
Despite historically strong performance in December—often boosted by the so-called “Santa Claus rally” during the Christmas holiday—this year’s unpredictability is tempering market optimism. Analysts note that typical seasonal trends have been unreliable throughout 2025.
The Thanksgiving week uptick in U.S. equities was fueled largely by growing expectations of a Federal Reserve rate cut in December, with over 85% of market bets pricing in a quarter-point reduction next week.
Meanwhile, after frequent disagreements with current Federal Reserve Chair Jerome Powell, President Donal Trump stated he has chosen his nominee for the next central bank leader, though he did not disclose a name. The market is anticipating Kevin Hassett to take the torch after Powell.
Economic data releases are returning to routine after disruptions from the 43-day government shutdown. This week, markets await the postponed Personal Consumption Expenditures index for September—considered the Fed’s preferred gauge of inflation.
Additional private data on manufacturing, services, and ADP’s monthly private payrolls figures are also scheduled for release.
