Stock futures tick higher with S&P 500 up 20% to close for second year in a row: Live updates

Stock futures were slightly higher on Tuesday, as investors look to wrap up another boom year that has S&P 500 Its second consecutive annual gain of more than 20% has been fueled by rate cuts, economic strength and enthusiasm for artificial intelligence.

A future connected to Dow Jones Industrial Average 76 points or 0.2 percent increase. S&P 500 futures Added 0.3%, as done. Nasdaq-100 futures.

The S&P 500 is up 23.8% in 2024, up from a 24.2% gain last year. gave Dow Jones Industrial Average There has been an increase of about 13%, while Nasdaq Composite has performed better with 29.8 percent advance.

Excitement around AI and its potential productivity gains led to significant gains for the major averages throughout the year, pushing “Magnificent Seven” stocks like AI chip darling Nvidia and iPhone giant Apple to new highs. Megacap technology gains helped propel the major average to record levels.

Stocks also benefited as the Federal Reserve began cutting rates on the heels of one of its most aggressive hiking cycles in recent history, raising hopes for a period of economic growth as borrowing costs eased. It happens. The central bank has cut interest rates by 100 basis points since September. Although further rate cuts are expected in the new year, the Fed’s pace may be slower than initially expected.

November also proved to be a successful re-election campaign for President-elect Donald Trump. Honor for the marketraising hopes for deregulation, lower corporate tax rates and a focus on the US economy, which remains resilient. Expectations of cryptocurrency-friendly management Powerful Bitcoin A record above $108,000. Tesla was another. The winner of the big election Because of CEO Elon Musk’s close relationship with Trump.

The Nasdaq and S&P have gained 7.1% and 2.5%, respectively, this quarter and are both on pace for their fifth consecutive positive quarter for the first time since 2021. quarter to five.

Despite a strong performance throughout the year, Wall Street is entering the final day of the year. December has been a weak phase for equities as investors take profits in some of 2024’s biggest winners and concerns over rising rates later in the year mount. The Dow is down 5.2% for its worst month since September 2022. The S&P is down 2.1% and heading for its worst month since April, while the Nasdaq is up 1.4%.

“It kind of makes sense if you think about it,” Paul Hickey, co-founder of Bespoke Investment Group, told CNBC.Closing bell: Overtime“On Monday.” You go into the end of the year with a very high market, you’re coming in with a new management – so there’s going to be uncertainty. You can’t blame investors for ringing the register a bit here.”

The loss in momentum also dashed investors’ hopes for a Santa Claus rally, which occurs during each of the five last trading days of a calendar year and the first two trading days of January. The market increases. Instead, the S&P 500 has fallen at least 1% during each of the past two trading days.

The Dow ended. Monday’s brisk trading session With a loss of over 418 points, or 0.97%. The S&P fell 1.07%, while the Nasdaq fell 1.19%.

The market is closed on New Year’s Day, Wednesday.