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Home / Business and Economy / Stocks Pause After Record Highs on Thin Christmas Eve

Stocks Pause After Record Highs on Thin Christmas Eve

24 Dec

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Summary

US stock futures edged lower in thin trading on Christmas Eve.
The S&P 500 hit a record closing high, driven by tech stocks.
Traders anticipate interest rate cuts by the end of 2026.

Stocks Pause After Record Highs on Thin Christmas Eve

U.S. stock index futures experienced a minor decline on Wednesday, a quiet Christmas Eve with low trading volumes. This follows a record close for the S&P 500 on Tuesday, bolstered by gains in major technology companies.

Recent economic indicators presented a mixed outlook. While third-quarter GDP growth was the fastest in two years, a drop in consumer confidence and stagnant factory production tempered optimism. Despite this, traders largely expect the Federal Reserve to implement two 25-basis-point interest rate cuts by the end of 2026.

The market is currently in the period where a 'Santa Claus rally' is possible, a seasonal trend indicating gains in the final trading days of the year and the first few of January. Trading is expected to remain subdued, with markets closing early on Wednesday and remaining shut on Thursday for Christmas.