Stock futures rise slightly to begin 2025 after S&P 500 notches back-to-back annual 20%-plus gains

Traders work on the floor of the New York Stock Exchange on the last day of trading for the year on Dec. 31, 2024 in New York City. 

Spencer Platt | Getty Images

Stock futures were slightly higher as trading got underway for 2025, with hopes that the market can regain the momentum that propelled it to log two-straight years of annual gains above 20%.

Futures tied to the Dow Jones Industrial Average rose 162 points, or 0.38%, while S&P 500 futures added 30 points, or 0.51%. Nasdaq-100 futures rose 154 points, or 0.73%.

Although stocks fell in weak trading in the final days of 2024, the year still produced solid returns. The S&P 500 surged 23% last year, while the 30-stock Dow added nearly 13%. Fueled by the enthusiasm around artificial intelligence and interest rate cuts, the Nasdaq Composite outperformed with a 29% advance.

Members of the so-called Magnificent Seven were behind much of the market’s action in 2024. AI chip darling Nvidia notched a 171% gain for the year, while iPhone maker Apple rose 30%. But these big gains led to some profit-taking at the year’s end. The S&P 500 recorded four-straight down days to cap the year — a first since 1966.

All this means, it will be difficult for a “Santa Claus rally” to materialize. That well-known market indicator is usually characterized by rising stocks in the five final days of a calendar year and the first two trading days of January. The broad index rises an average of 1.3% during this period and has finished higher almost 80% of the time, according to Dow Jones market data going back to 1950.

Adding to the pressure, investors may be assessing the impact of a deadly attack in New Orleans on New Year’s Day that is being investigated as a possible terrorist act. The Federal Bureau of Investigation said it’s possible the suspect, who drove a truck into a crowd, wasn’t “solely responsible” for the incident.

The holiday-shortened week has been light on economic data, but Thursday will bring a look at weekly jobless claims that will offer a read on how the labor market is faring.

European stocks kick off 2025 on a positive note

European markets kicked off 2025 trading on a positive note, with the cross-European Stoxx 600 adding 0.28% by 8:11 a.m. London time.

stoxx 600

Oil and gas and mining stocks led gains and were last 1.47% and 1.32% higher respectively. Banks meanwhile dipped 0.1% and media stocks fell 0.33%, making them the only two sectors to pull back.

Major regional bourses also gained on Thursday, with the U.K.’s FTSE 100 adding 0.29%, France’s CAC 40 rising 0.21% and Germany’s DAX climbing 0.55%.

— Sophie Kiderlin

China stocks lead losses with CSI 300 closing down nearly 3%; Asia markets mixed

SINGAPORE — Asian stocks traded mixed Thursday, with China stocks leading losses as several major markets resumed trading after New Year’s Day holiday.

Mainland China’s CSI 300 dipped over 3% lower before narrowing the losses to 2.91%, ending at 3,820.39. Hong Kong’s Hang Seng Index tumbled 2.37% in the final hour of trade.

South Korea’s Kospi index inched lower to close at 2,398.94, while the Kosdaq added 1.24% to 686.63. Australia’s S&P/ASX 200 rose 0.52% and finished at 8,201.2.

Markets in Japan will remain closed for the rest of this week.

— Anniek Bao

Stock futures are higher to begin 2025

Comments (0)
Add Comment