Wall Street was on track to open with small gains Tuesday, the final day of trading in what’s been a banner year for U.S. markets.
Futures for the S&P 500 and the Dow Jones Industrial Average each rose about 0.3 per cent before the bell.
The retail sector helped to lift markets earlier after significant declines — mostly in the technology sector — dragged Wall Street down the past two trading sessions.
Markets tumbled on Monday, denting what has otherwise been a wildly bullish stretch for investors thanks to a growing economy, solid consumer spending and a strong jobs market.
Despite the post-holiday slump, the S&P 500 is up about 24 per cent heading into the final day of 2024. The Nasdaq is up nearly 30 per cent and the Dow has gained 13 per cent.
Markets have been energized by receding inflation, which has gotten closer to the Federal Reserve’s two per cent target. That raised hopes that the central bank would deliver multiple interest rate cuts into next year, which would ease borrowing costs and fuel more economic growth.
Yet after three interest rate cuts in 2024, the Fed has signaled a more cautious approach heading into 2025 with inflation remaining sticky as the country prepares for president-elect Donald Trump to transition into the White House. Trump’s threats to hike tariffs on imported goods have raised anxiety that inflation could be reignited as companies pass along the higher costs from tariffs.
After closing for the holiday Wednesday, the U.S. on Thursday will release updated figures for construction spending last month, as well as weekly jobless claims data. There will be new data on manufacturing released Friday.
In Europe at midday, France’s CAC 40 jumped 0.8 per cent, while Britain’s FTSE 100 climbed 0.6 per cent. German markets are closed on New Year’s Eve and Jan. 1 with trading set to continue Thursday.
Australia’s S&P/ASX 200 in Sydney skidded 0.9 per cent to 8,159.10.
Hong Kong’s Hang Seng added nearly 0.1 per cent to 20,059.95, while the Shanghai Composite lost 1.6 per cent to 3,351.76 after Chinese manufacturing data seemed to show that Beijing’s stimulus measures have not done enough to boost the nation’s sluggish economy.
China’s Purchasing Managers’ Index, based on a survey of factory managers, slipped to 50.1 in December from 50.3 the previous month, the National Bureau of Statistics said Tuesday. It was the third straight monthly reading above 50, a level that indicates an expansion of manufacturing activity.
Markets in Tokyo and Seoul were closed for New Year holidays.
Trading is set to resume in Tokyo on Jan. 6, as markets will stay closed for the rest of the week for the New Year holidays. South Korean markets will be closed for New Year’s Day and resume trading Thursday.
Benchmark U.S. crude rose 41 cents to US$71.40 a barrel. Brent crude, the international standard, added 38 cents to $74.37 a barrel.
The U.S. dollar fell to 156.76 Japanese yen from 156.90 yen. The euro cost $1.0401, down from $1.0410.
