(Reuters) – U.S. stock index futures fell on Thursday in light trading volume after the Christmas holiday, as investors evaluated their portfolios and looked for support for the final month of the year from the so-called Santa Claus rally.
Heavyweight stock Nvidia (NASDAQ:) was down 1.1% in pre-market trading, while Google parent Alphabet (NASDAQ:) was down 0.5%.
At 5:03 a.m., Dow E-minis were down 146 points, or 0.33%, E-minis were down 26.75 points, or 0.44%, and E-minis were down 118.75 points, or 0.54%.
Markets were closed in London and parts of Asia on Thursday.
The S&P 500 and Nasdaq ended Tuesday's session short with a third straight session of gains, supported by blue-chip stocks and growth stocks.
Gains in Apple (NASDAQ:), Tesla (NASDAQ:), Alphabet, Amazon (NASDAQ:), Nvidia, Microsoft (NASDAQ:) and Meta Platforms (NASDAQ:) accounted for more than half of the S&P 500's total return of 28.4% this year. According to S&P Dow Jones analyst Howard Silverblatt.
Without Magnificent Seven shares, the benchmark's total return would have been 13.2% in 2024, Silverblatt added.
US stocks posted a rapid rise this month after election-led gains in November as they compete with the Federal Reserve's expectations of smaller interest rate cuts in 2025.
Investors typically hope for a strong finish in the final days of the year — called the “Santa Claus Rise” — a pattern attributed to low liquidity, tax loss harvesting, and investing year-end bonuses.
The S&P 500 rose an average of 1.3% in the last five trading days of December and the first two days of January since 1969, according to Stock Traders Almanac. Data from LPL Financial (NASDAQ:) going back to 1950 showed that a December without a Santa was followed by a weaker-than-average year.
Labor Department data on weekly unemployment claims is scheduled to be released before the market opens on Thursday although claims have entered a period of volatility, which could make it difficult to get a clear view of the labor market.
Separately, major banks and business groups sued the Federal Reserve on Tuesday, alleging that the US central bank's annual “stress tests” of Wall Street firms violate the law.
