NEW YORK, December 31, 2025, 04:34 ET — Premarket
- S&P 500, Nasdaq 100 and Dow futures were modestly lower in thin New Year’s Eve trading.
- Meta stayed in focus after agreeing to buy AI startup Manus, while Apple and Nvidia led a soft patch for big tech.
- Investors are watching weekly jobless claims and year-end positioning into the first trading days of 2026.
U.S. stock index futures edged lower early Wednesday, setting up a cautious start to New Year’s Eve trading as investors weighed a fresh burst of dealmaking in artificial intelligence against a late-year pullback in big tech.
The final session of the year tends to bring lighter volumes, and that can magnify moves as funds rebalance portfolios and adjust risk before year-end statements and benchmark resets.
The S&P 500 is up about 17% so far this year and the Dow has logged a long monthly winning streak, leaving little tolerance for surprises. Some investors are also watching for a “Santa Claus rally” — a seasonal pattern of gains in the last five trading days of December and the first two of January, according to the Stock Trader’s Almanac.
By 2:18 a.m. ET, S&P 500 futures were down 0.23%, Nasdaq 100 futures were off 0.36% and Dow futures were down 0.11%, according to Markets Insider.
In Tuesday’s regular session, the S&P 500 slipped 0.14% to 6,896.24 and the Nasdaq Composite fell 0.23% to 23,419.08, while the Dow Jones Industrial Average lost 0.20% to 48,367.06. Communication-services stocks held up better than the broader market as Meta Platforms rose 1.1%, but Apple fell 0.3% and Nvidia dipped 0.4%.
Mark Hackett, chief market strategist at Nationwide, said the rotation away from mega-cap tech reflected repositioning rather than panic, calling it “a healthy rebalancing of allocations.” (Reuters)
Meta’s move drew attention after the company said it would acquire Manus, a Singapore-based AI startup with Chinese roots, as it pushes harder into so-called AI “agents” — software designed to complete tasks such as research and coding with limited human input. Meta did not disclose financial terms, but the Wall Street Journal pegged the deal at more than $2 billion, AP reported. (AP)
The acquisition lands as investors scrutinize whether heavy AI spending by the largest platforms is translating into revenue growth. Meta has framed the deal as part of its effort to expand AI capabilities across Facebook and Instagram, AP reported.
Elsewhere, Citigroup slid 0.8% on Tuesday after the bank said its board approved the sale of its Russian unit, a deal it expects will result in a pre-tax loss of about $1.2 billion, largely tied to currency translation.
Energy stocks outperformed in the prior session, with the sector rising 0.8% as oil prices found support after Russia signaled it would toughen its negotiating stance in its conflict with Ukraine.
Macro traders have weekly initial jobless claims on the calendar at 8:30 a.m. ET, with the release moved to Wednesday because Thursday is the New Year’s Day holiday, according to the Labor Department’s schedule. 1
U.S. stock markets are scheduled to trade regular hours on Wednesday and will be closed on Thursday for New Year’s Day, reopening on Friday. (MarketWatch)
