U.S. stock futures held steady on Wednesday following another record-setting session for the S&P 500, paving the way for a festive run-up to the Christmas holiday on Wall Street.
As of 4:31 P.M. (GMT+7), Dow Jones Industrial Average futures slid down by 0.07%, or 36.30 points, to 48,406.10 points, while S&P 500 futures fell marginally by 0.08%, or 5.60 points, to 6,904.20 points. Nasdaq 100 futures also edged down by 0.08%, or 20.60 points, to 25,567.20 points. The three indices hovered marginally below breakeven as trading activity slowed ahead of the holiday-shortened week.
Markets will close early on Wednesday for Christmas Eve and remain shut on Thursday in observance of the holiday. Investors are optimistic for a continued “Santa Claus” rally after a fourth consecutive day of gains propelled the S&P 500 above the 6,900 mark.
Despite the market’s positive momentum, the recent economic indicators have tempered immediate hopes for Federal Reserve rate cuts. The U.S. economy expanded at an annualized 4.3% in the third quarter, based on an initial government estimate, handily beating expectations as consumer spending remained resilient over the summer.
However, economists caution that such a robust pace is unlikely to be sustained in the fourth quarter, particularly as government shutdowns weigh on growth. Further, recent data indicate consumer sentiment has deteriorated, with confidence falling to its lowest level since the imposition of tariffs under President Trump’s administration in April.
The GDP numbers have led traders to scale back expectations for an interest rate cut as soon as January, with only a little over 13% now anticipating such a move. Nonetheless, most market participants still foresee the Federal Reserve delivering two cuts before the end of 2026, even as divisions within the central bank are expected to linger with a new chair set to succeed Jerome Powell by mid-year.
President Donald Trump, meanwhile, reacted to the market’s interpretation of Fed policy by emphasizing that he expects his incoming Fed chair nominee to reduce rates regardless of prevailing strength in equity markets.
Attention on Wednesday will turn to the government’s report on weekly jobless claims, although recent releases of this data have been marked by heightened volatility.
