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Stock futures were slightly higher Tuesday, as investors look to wrap up another booming year that hoisted the S&P 500 to its second consecutive annual gain exceeding 20%, spurred by enthusiasm for rate cuts, economic strength and artificial intelligence.
Futures for the Dow Jones Industrials hiked 119 points, or 0.3%, to 43,046.
Futures for the much broader index captured 21.75 points, or 0.4%, to 5,980.50.
Futures for the NASDAQ 96.5 points or 0.2%, to 21,512.75.
The Dow finished Monday’s choppy trading session with a loss exceeding 418 points, or 0.97%. The S&P plunged 1.07%, while the NASDAQ shed 1.19%.
The S&P 500 has surged 23.8% in 2024, putting it solidly on pace for its second consecutive gain above 20%. The Dow has added nearly 13%, while the NASDAQ has outperformed with a 29.8% advance.
The story surrounding AI and its potential productivity boost powered significant gains for the major averages throughout the year, pushing “Magnificent Seven” stocks such AI chip darling Nvidia and iPhone giant Apple to new highs. The megacap technology gains also lifted the major averages 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, spurring hopes for a period of economic growth as borrowing costs ease. Since September, the central bank has lowered rates by 100 basis points. Although further rate cuts are expected in the new year, the Fed’s pace may slow from initial expectations.
The NASDAQ has gained 7.1% and S&P has surged 2.5%, this quarter and are both on pace for a fifth consecutive positive quarter for the first time since 2021. The Dow is up a mere 0.6% over the same period for its fourth positive quarter in five.
Oil prices gained 64 cents to $71.63 U.S. a barrel.
Gold prices shone brighter by $4.70 to $2,622.80 U.S. an ounce.
