U.S. stock futures edged marginally higher when markets closed on Thursday, with the S&P 500 Futures, Nasdaq 100, and Dow Jones Futures making gains as traders bet on strong U.S. economic numbers to counter potential interest hikes by the Federal Reserve in 2026.
The S&P 500 Futures ticked up 0.1% to 6,987.75 points, while Nasdaq 100 Futures gained 0.1% to 25,908 points, and Dow Jones Futures inched 0.1% to 49,057 points.
S&P 500 Futures, Nasdaq 100 Futures, and Dow Jones Futures Post Gains as U.S. GDP Grows 4.3% YoY
U.S. markets closed early on Wednesday and observed a holiday on Thursday, Christmas Day. This resulted in lower trading volumes, contributing to muted moves across the futures market. Lightly staffed institutional desks and key markets in Europe and Asia, which remained closed, have been cited by participants as a factor that thinned liquidity and kept futures in a narrow range.
On Wednesday, the S&P 500 hit a new all-time high, rising about 0.2% to reach 6,921.42 points, marking its 39th record close of the year. This comes amid optimism around strong third-quarter economic growth in the U.S., which exceeded Wall Street’s expectations.
The U.S. domestic product reading for Q3 2025 came in at 4.3% – the fastest growth rate in two years – surpassing the Dow Jones consensus estimate of 3.2%. The Department of Commerce’s report, delayed by the 43-day government shutdown, initially led traders to lower expectations of an interest rate cut early next year. However, the CME FedWatch Tool suggests at least two rate cuts by the end of next year.
Weekly jobless claims have dropped to 214,000. This means fewer people are filing for unemployment, while the jobs market is running hot, keeping wages and prices stable. Meanwhile, the 10-year Treasury yield has eased to around 4.16%. This supports the expectation that the broader economy will remain resilient going into the new year.
Stock Market Surges on Strong Session by Tech and AI Players
Additionally, renewed enthusiasm for tech and AI-related stocks, coupled with speculation on potential Fed rate cuts in 2026, underpinned the advances across the U.S. equities and futures markets. Investors also hope for the coveted Santa Claus rally – a year-end surge that occurs in the stock market between the last five trading days of the year and the first two days of the new year. This year, the Santa Claus rally is expected to run from the opening bell on December 24 until January 5, 2026.
Meanwhile, the broad market index rose 0.32%, ending Wednesday’s session at 6,932.05 points. The Dow Jones Industrial Average is up 0.60% to 288.75 points, while posting a closing record of 48,731 points. The Nasdaq Composite advanced 0.22% to settle at 23,613.31 points.
Stocks were coming off a strong session, led by tech players including Alphabet (GOOG), Nvidia (NVDA), Broadcom (AVGO), and Amazon (AMZN).
The day’s biggest winner was Nike (NKE), which climbed 4.64% after Apple CEO Tim Cook praised the company and disclosed owning shares in the sports brand. American computer memory and data storage solutions firm Micron Technology (MU) rose 3.8% as investors rotated capital into AI infrastructure plays. Retail giant Target (TGT) gained 2.36% on steady consumer demand and optimism around the holiday season. Banking behemoth Citigroup’s (C) shares up 1.8%, hitting fresh highs during the session.
