Investors are taking stock as the end of the year fast approaches.
U.S. stock futures were little changed Sunday, as investors look ahead to the last full trading week of the year.
Dow Jones Industrial Average futures (YM00) were up 110 points, or 0.2%, while S&P 500 futures (ES00) advanced 0.1% and Nasdaq-100 futures (NQ00) were flat late Sunday. All three were recently trading around session highs.
Bitcoin (BTCUSD) briefly dipped below the $88,000 level, falling around 2% over the weekend. Gold (GC00) and silver futures (SI00) rose, while crude futures (CL.1) advanced.
Stocks slid on Friday, led by a sharp decline in the tech sector, as investors continue a “rotation trade” out of AI stocks. For the week, the S&P 500 SPX declined 0.6%, the tech-heavy Nasdaq COMP dropped 1.6% and the Dow DJIA gained 1%, according to Dow Jones Market Data.
See more: Investors are dumping stock-market winners and buying almost everything else. Why that’s a good sign.
Analysts at Wedbush said in a Sunday note that despite last week’s “jitters” in AI stocks, they remain confident that ” most fundamental drivers and trading signals remain positive.”
“Unless there are widespread delays that would lead to a reset of expectations across the AI buildout ecosystem, we would focus on underlying demand that remain strong,” said the analysts, led by Seth Basham.
Stephen Innes, managing partner at SPI Asset Management, said the recent weakness in AI stocks is a good thing. “The rally is no longer standing on a single AI pillar. Participation is broadening, leadership is rotating, and the market is slowly replacing a narrow, story-driven melt-up with something sturdier: an expression of improving real-activity expectations, backed by easier financial conditions,” he said in a weekend note.
This week will be the last uninterrupted trading week of the year, as the Christmas and New Year’s holidays loom.
The November jobs report will drop on Tuesday and a key inflation reading comes Thursday, with investors looking for reassuring signs following the Fed’s third straight rate cut last week. However, both of this week’s economic readings will be based on older data, due to the lingering effects of the government shutdown, and there is speculation that investors will take them with a grain of salt.
Read more: Stocks risk a stir-up in last trading push of the year. Where to put your money.
-Mike Murphy
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