Stock futures mixed to start holiday-shortened week; Honda hovers over merger plans

U.S. stock futures were mixed in premarket trade Monday at the start of a holiday-shortened week.

Futures contracts linked to the Dow Jones Industrial Average fell about 0.5%, while S&P 500 futures were slightly lower and Nasdaq 100 futures were flat.

Despite rallying Friday, all three indexes lost ground last week after the Federal Reserve downgraded its forecast for future rate cuts. It was the Dow’s third straight weekly decline and the S&P 500’s second. The Fed-driven selloff snapped a four-week winning streak for the Nasdaq Composite.

U.S.-listed shares of Honda ( HMC ) jumped in early trade after outlining plans to discuss a merger deal with fellow automaker Nissan, confirming reports from last week.

Shares of Palantir ( PLTR ) edged higher on the defense contractor’s first day as part of the Nasdaq 100. MicroStrategy ( MSTR ), another new addition to the index, fell.

The economic and business calendars are light this week, with data on consumer confidence today and new home sales tomorrow. The stock market closes at 1 p.m. ET Tuesday and will remain closed Wednesday. Regular trading will resume on Thursday morning.

Investors will hope that Thursday brings the start of a Santa Claus rally that could send stocks to record highs heading into the new year.

Treasury yields continued to tick higher on Monday after rising last week following the Fed’s rate forecast. The 10-year Treasury yield was at 4.55%, the highest level since May on Monday morning.

Bitcoin was trading around $95,000 after falling below the $100,000 mark last week. The dollar, trading at its highest level since 2022, rose against most major currencies. Futures on gold and oil were lower.