U.S. stock futures declined on Wednesday evening, signaling a cautious start to 2025 after a strong 2024 marked by AI-driven tech gains and lower interest rates. The momentum waned in late 2024 as a “Santa Rally” fizzled, with the Federal Reserve signaling a slower pace of rate cuts and uncertainty surrounding incoming President Donald Trump’s policies. Futures for the S&P 500, Nasdaq 100, and Dow Jones fell marginally amid thin holiday trading volumes. Wall Street ended 2024 on a muted note, with the S&P 500, Nasdaq, and Dow posting modest declines in December but strong annual gains of 23.3%, 28.6%, and 12.9%, respectively. Looking ahead, Trump’s trade tariffs and expansionary policies, coupled with the Fed’s cautious stance on rate cuts due to persistent inflation, are expected to shape market sentiment in 2025.
