In the week starting on December 22, 2025, the US stock futures have begun trading on a positive note, thanks to the rebound of technology stocks due to renewed interest in artificial intelligence. The speculations about an anticipated Fed rate cut have also added to Wall Street gains.
Micron Technology’s forecast of a possible rebound, along with a minimal inflation forecast, has caused the rise in demand for technology shares such as the S&P 500 and NASDAQ. Other names in the industry, such as Nvidia, Broadcom, Intel, and Advanced Micro Devices, have significant gains.
The performance of AI-driven stocks will invariably determine the gains or losses that will shape the destiny of Wall Street as the new year approaches.
What will the Last Week of 2025 Look Like for the US Stock Market?
When the trades of the day closed for December 22, 2025, the S&P 500, NASDAQ, and Dow Jones ended trading on a positive note; the S&P 500 rose 43.99 points, or 0.6 percent, to 6,878.49; the Dow Jones Industrial Average rose 227.79 points, or 0.5 percent, to 48,362.68; the Nasdaq Composite rose 121.21 points, or 0.5 percent, to 23,428.83.
As the key indices have traded on a positive note on the very first day of this week, analysts expect the week ahead to be calm and steady without any significant occurrences. Since AI-related stocks are the best-performing technology stocks in the market, whether the US stock futures will be steady or will fluctuate is determined by them. The performance of these tech stocks will determine if the market will close on a positive note in 2025.
Impact of the Anticipated Fed Rate Cuts on US Stock Futures
The anticipated Fed Rate Cuts, if materialized, will have a positive impact on the US stock futures. Bigger cuts will boost the growth of the stock futures; however, several other macroeconomic factors will also play an important role.
This is because lower rates reduce discount rates and improve equity valuations. A heavy rate cut of 50 basis points or more can trigger a stronger rally in futures, particularly if accompanied by expectations of further cuts. Moreover, if the Federal Reserve signals a multi-quarter easing cycle, the gains owned by the stock futures will be more pronounced.
Investor sentiment, inflation trajectory, and economic data (labor market, growth indicators) at the time under consideration will also affect how stock futures respond to the rate cuts.
Inflation Outlook and US Stock Futures
Inflation in the US for December 2025 has been slightly higher than that of the previous months; headline CPI was around 2.6% year-over-year, and core CPI was near 2.6%. As of December 22, the monthly CPI was at 0.25% while core PCE is projected at 2.73% annually. Despite the inflation forecasts being over the higher end, it has not had any adverse effect on the US stock futures. This might be due to the anticipation of a Fed Rate Cut.
