US stock index futures traded marginally higher Tuesday, recovering after gains in the world’s biggest technology stocks, in thin trading ahead of the Xmas Break. Dow Jones Futures advanced 10 points, or 0.1%, S&P 500 Futures were 6 points higher, or 0.1%, and Nasdaq 100 Futures added 0.2%.gy stocks.
At 05:20 ET (10:20 GMT), Dow Jones Futures gained 10 points, or 0.1%, S&P 500 Futures were up 6 points, or 0.1%, and Nasdaq 100 Futures edged 40 points higher, or 0.2%.
The New York Stock Exchange is scheduled to close early Tuesday for Christmas Eve and on Christmas Day.
The holiday-shortened week got off to a strong start for tech as semiconductor stocks drove Wall Street indexes higher on Monday, with a surge to the sector.
The S&P 500 gained 0.7%, the Dow Jones Industrial Average rose 0.2% and the NASDAQ Composite climbed 1%, with the tech mega caps, Nvidia (NASDAQ: All three — NVDA, Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) — are all rising substantially.
Fed slump ends on Wall Street
After the Federal Reserve projected fewer-than-expected cuts in 2025 last week, the main indices have started the holiday-shortened week on a positive note, bouncing. All three major indexes had fallen sharply and Wall Street had fallen weekly.
The Fed repeated its cautious approach to monetary policy adjustments, saying it is not yet ready to make further rate cuts unless progress on inflation continues.
After the Fed meeting, markets pared back rate cut expectations, pricing in just two more cuts in the year ahead.
But sentiment improved Friday after the Fed’s preferred measure of inflation, (PCE) price index, rose at a slower-than-expected pace in November.
Although recent data shows cooling, the persistent significance above the 2% target shows inflationary pressures are far from being fully under control.
BofA: Clients continue to buy US equities
However, BofA Securities said its clients were still buying US equities for the seventh straight week. In particular, inflows hit $10 billion, the second largest since 2008 and the highest since January 2017.
Purchases were spread similarly to recent weeks across individual stocks and exchange traded funds (ETFs), with more concentrated flow to individual stocks. The lion’s share of buying activity was in large caps, and small caps saw less of it.
Equity holdings rose for another week, the third for institutions and the second for retail clients. Hedge funds, for the second week in a row, were net sellers.
Inflows from institutional clients reached their highest point in nine months, a typical pattern of renewed buying activity after mutual fund tax loss selling in October.
Big net buyers in January vs. big sellers in December on private clients who tend to be big sellers in December because of tax loss selling. This group has been a buyer of ETFs this month, but sold single stocks, albeit slightly less than in the typical December, BofA strategists led by Jill Carey Hall said.
Crude gains ahead of Xmas break.
Crude prices edged higher Tuesday, trapped in a tight trading range before the Christmas holiday period.US crude futures (WTI) rose 0.6% to $69.64 a barrel and Brent rose 0.6% to $72.75 a barrel, both at 20 ET.enth straight week. Specifically, inflows reached $10 billion, the second-largest amount since 2008 and the biggest since January 2017.
Similar to recent weeks, purchases were spread across both individual stocks and exchange-traded funds (ETFs), with stronger inflows directed toward single stocks. Large-cap stocks saw the bulk of the buying activity, while small caps experienced more subdued inflows.
Institutional and retail investors increased their equity holdings for another week, the third for institutions and the second for retail clients. In contrast, hedge funds were net sellers for the second consecutive week.
The rolling four-week average of inflows from institutional clients hit its highest point in nine months, reflecting a typical pattern of renewed buying activity following October’s tax-loss selling by mutual funds.
Private clients typically are big sellers in December amid tax loss selling vs. big net buyers in January. While this group has been a buyer of ETFs this month, it has sold single stocks, though slightly less so than in the average December, BofA strategists led by Jill Carey Hall noted.