Calm dominated U.S. stock index futures during Monday evening trading, after Wall Street closed the session lower, pressured by losses in major technology stocks, as investors look ahead to the release of minutes from the Federal Reserve’s latest meeting for fresh clues on the path of monetary policy.
Futures for the S&P 500 posted a slight decline, while Nasdaq 100 futures edged lower at a similar pace, and Dow Jones futures remained broadly steady with minimal change. This market performance reflects thin year end liquidity, with many traders still away from their desks ahead of the New Year holiday.
U.S. equities closed lower in the prior session, marking the S&P 500’s second consecutive daily decline, while the Nasdaq and Dow both retreated about half a percent, driven by profit taking in large-cap tech names following strong gains earlier in the month that pushed benchmark indexes to record or near record levels.
Market participants are focused on the upcoming Fed minutes, which are expected to shed more light on policymakers’ assessment of inflation trends, labor market conditions, and the appropriate interest rate trajectory, especially as markets continue to price in the possibility of monetary easing through 2026.
The minutes could shape near term market sentiment in a week featuring limited economic data, with trading volumes still subdued due to seasonal holiday effects. U.S. markets are also set to close later in the week in celebration of New Year’s Day.
Meanwhile, investors are tracking seasonal behavior tied to the so called “Santa Claus Rally,” a period stretching from late December into early January that has historically delivered positive stock returns. Although optimism helped buoy markets earlier this month, the recent pullback has sparked questions over whether the pattern will fully play out this year.
Despite the latest softness, U.S. equities remain on track to close the year with robust annual gains, underpinned by expectations for future rate cuts, resilient economic growth, and solid corporate earnings momentum.
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