The Nasdaq led US stock futures higher on Monday, as Wall Street entered a holiday-shortened week calculating the chances of a “Santa Claus rally” to end the year.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) adding 0.5%, and those on the S&P 500 (ES=F) put on 0.3%. Meanwhile, Dow Jones Industrial Average (YM=F) held just above the flatline, with the major US gauges eyeing a third straight day of gains.
Behind the upbeat mood is a recovery in tech stocks, after a bumpy streak as investors fretted about high valuations and debt linked to AI plans. But faith in the AI trade surged again, thanks to positive news for Oracle (ORCL) and Nvidia (NVDA).
Investors are now debating whether AI names can hold onto that momentum, as they gauge the prospects for a Santa Claus rally in the remaining seven sessions of the year. Stocks are entering the final stretch within 3% of their record highs, as a surprise drop in inflation and lukewarm labor market data keep optimism for gains alive.
Elsewhere in markets, gold (GC=F) and silver (SI=F) climbed to record highs, while crude oil (CL=F, BZ=F) futures rose after the US seized a second oil tanker off Venezuela.
US stock markets will close early on Wednesday as traders head out for the holidays, and will be shuttered all of Thursday for Christmas Day.
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