Dow, S&P 500, Nasdaq futures slide as Wall Street enters final trading month of 2025
U.S. stock futures fell on Sunday night as Wall Street’s strong rebound in late November looked set to be dealt a swift blow on the first trading day of December.
Dow Jones Industrial Average (YM=F) contracts fell 0.4%. S&P 500 futures (ES=F) fell 0.5% and Nasdaq 100 futures (NQ=F) fell 0.7%.
The declines followed gains in a holiday-shortened week for stocks. The S&P 500 (^GSPC) rose 3.7%, while the Nasdaq Composite (^IXIC) rose nearly 5%, putting a volatile November behind it. The Dow (^DJI) also posted a solid gain of 3.2%.
Monday kicks off the first trading session of December, which has historically been one of the market’s friendliest months. But much of this increase can be attributed to the “Santa rally,” a period of increased trading during the Christmas holidays. This year, analysts are retreating from the concept of a booming holiday season after much of the year has been unpredictable, while consistently bucking seasonal trends.
“None of them behaved seasonally,” Amy Wu Silverman, head of derivatives strategy at RBC Capital Markets, told Yahoo Finance.
The market’s rise over the Thanksgiving week was largely driven by growing hopes that the Fed will cut interest rates in December. 85% of bets It will be reduced by a quarter point next week. Meanwhile, after a year of wrangling with current Chairman Jerome Powell, President Trump announced his pick of who will lead the central bank next.
“I know who I’m going to pick, yes,” Trump told the media from Air Force One on Sunday night, without specifying his choice.
After the chaos created by the 43-day government shutdown, economic data continues to return to normal. This week, the September Personal Consumption Expenditures index, which includes the Fed’s preferred inflation indicator, is expected to be announced with a delay. Investors will also see ADP’s special monthly payroll report, as well as special reports on manufacturing activity and service sector activity.
Despite nearing the end of scheduled releases, corporate earnings will continue this week with discount retailers Dollar Tree (DLTR), Dollar General (DG) and Five Below (FIVE) reporting, while the tech sector will include Salesforce (CRM) and CrowdStrike (CRWD).
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