US equity futures remained sluggish on Friday (December 26th), expected to remain in thin trading after the market closed for a holiday. Contracts tracking the S&P 500 and the Dow held near their record highs amid expectations that continued economic growth and more accommodative monetary policy are supporting earnings prospects. Despite optimism that corporate earnings will remain strong, skepticism about the magnitude of the Fed's interest rate cuts next year and lingering concerns that excessive capital spending on AI infrastructure prevented a sharper "Santa Claus rally" as the new...
The S&P 500 and Dow rose 0.1%, closing at record highs as strength in the technology and energy sectors offset caution related to strong growth data. The Nasdaq also rose 0.1%. Nvidia rose 1% after announcing a licensing deal with AI startup Groq, reviving demand for AI-related stocks and supporting the broader megacap complex. Energy stocks also found support as renewed U.S. action and rhetoric against Venezuelan exports helped support crude oil prices. At the same time, investors digested the delayed BEA release showing third-quarter GDP grew at a strong annualized pace of 4.3%,...
Japanese stocks weakened in quiet trading amid uncertainty about the economic outlook and the strength of corporate earnings performance going forward. The electronics sector led the declines, primarily due to pressure. At 00:32 GMT, the Nikkei Stock Average fell 0.2% to 50,630.94. Market movements were said to remain fragile as investors weighed the risks of an economic slowdown and potential pressure on corporate earnings. At the stock level, several names in the technology/electronics sector weighed. Kioxia Holdings fell 2.8%, while Canon Inc. fell 1.9%, reflecting weakening interest in...