The major U.S. index futures indicate a higher opening on Friday, suggesting that stocks are poised to recover after a recent downward trend over the past few sessions. The markets could experience a resurgence in activity as investors engage in bargain hunting after the recent downturn, during which the major averages recorded four consecutive days of declines. Renewed strength among technology stocks may contribute to an early advance, as evidenced by the 1.0 percent increase in Nasdaq 100 futures. Shares of Taiwan Semiconductor are surging by 2.7 percent in pre-market trading following the U.S. government’s approval of the chipmaker’s annual license to import equipment to its facilities in China. Major AI players Nvidia and Palantir Technologies are also experiencing notable pre-market strength following their impressive performance last year. Equities could experience advantages from the sustained upward trajectory observed throughout much of 2025, which propelled the primary indices to unprecedented peaks. Overall trading activity appears to be relatively muted, as a number of traders are likely absent from their desks in the aftermath of the New Year’s Day holiday on Thursday.
The absence of significant economic data from the U.S. could lead to a degree of caution among traders, particularly in anticipation of the forthcoming release of several important reports next week, notably the highly scrutinized monthly jobs report. Continuing a recent downward trend, equities experienced further weakness amid subdued trading on New Year’s Eve Wednesday. The principal indices exhibited significant declines throughout the trading session. The major averages concluded the day slightly above their session lows. The Dow decreased by 303.77 points, representing a decline of 0.6 percent, closing at 48,063.29. The Nasdaq experienced a drop of 177.09 points, or 0.8 percent, finishing at 23,241.99. Meanwhile, the S&P 500 fell by 50.74 points, equivalent to a 0.7 percent decrease, ending at 6,845.50.
The prolonged retreat occurred as certain traders persisted in realizing gains from the recent market robustness. Despite the major averages closing lower for the fourth consecutive session, this decline follows the record closing highs achieved by the Dow and S&P 500 at the end of last Wednesday’s trading. Notwithstanding recent pullbacks, the major averages have nonetheless recorded substantial gains over the course of the year. The tech-heavy Nasdaq experienced a remarkable increase of 20.4 percent for the year, while the S&P 500 achieved a notable rise of 16.4 percent and the Dow recorded a significant gain of 13.0 percent. Equities experienced a swift rebound following a sharp decline triggered by President Donald Trump’s “Liberation Day” tariffs in early April, with additional gains largely attributed to the robust performance of prominent technology firms. On the U.S. economic front, the Labor Department released a report indicating that first-time claims for U.S. unemployment benefits unexpectedly declined in the week ending December 27th. According to the report, initial jobless claims decreased to 199,000, reflecting a reduction of 16,000 from the revised figure of 215,000 reported the previous week. Analysts had anticipated an increase in jobless claims to 220,000, up from the previously reported figure of 214,000 for the prior week.
Biotechnology stocks exhibited some of the market’s poorest performances on the day, resulting in a 1.9 percent decline in the NYSE Arca Biotechnology Index. Significant weakness was evident among gold stocks as the price of the precious metal declined, with the NYSE Arca Gold Bugs Index experiencing a drop of 1.4 percent. Computer hardware, brokerage, networking, and semiconductor stocks experienced significant declines, trending downward in tandem with the majority of other key sectors.