Nasdaq, S&P 500, Dow futures rise as Wall Street eyes a New Year’s comeback

On By Littum

Technicals led as U.S. stock futures rose on Thursday, getting the new year off to a roaring start as Wall Street returned from vacation.

Contracts linked to the S&P 500 (ES=F) rose 0.7%, while Dow Jones Industrial Average futures (YM=F) rose 0.6%. Futures on the tech-heavy Nasdaq 100 (NQ=F) jumped 0.9% as traders returned from Wednesday’s holiday shutdown.

Markets are eyeing a comeback after a year-end slide to start the week, and hopes for a “Santa Claus rally.” But the decline capped a 2024 blowout for U.S. stocks that saw the S&P 500 (^GSPC) post two straight years of more than 20% gains — something it hasn’t accomplished in nearly three decades.

Several Big Tech stocks rose early in the morning, with Nvidia ( NVDA ) , Amazon ( AMZN ) and Meta ( META ) all rising as artificial intelligence optimism crept back in. Investors have been debating what role “Magnificent Seven” stocks will play in energy markets in 2025 after their massive outperformance last year.

During the holiday week, U.S. mortgage rates rose to 6.97% to hit the highest level since early July, data showed. The gain weighed on applications for home purchases and dented refinancing, according to the Real Credit Council.

Later Thursday, fresh readings on weekly jobless claims and manufacturing activity could test investors’ hopes for the U.S. economy that helped underpin last year’s roaring stock market rally.

On the corporate front, Apple ( AAPL ) shares fell after the iPhone maker offered rare price discounts on its latest models in China, reflecting increasing competition from local handset makers. Meanwhile, Alibaba’s ( BABA , 9988.HK ) stock fell as markets absorbed news that the Chinese e-commerce giant will sell its stake in hypermarket chain Sun Art ( SURRY , 6808.HK ) at a deep discount.

Tesla ( TSLA ) shares rose ahead of the release of fourth-quarter delivery data from the electric car maker and after a Cybertruck exploded in Las Vegas on Wednesday, killing its driver. The FBI is investigating whether the explosion outside the Trump International Hotel was an act of terrorism.

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