U.S. stock index futures were largely flat on Sunday evening as investors approached another holiday-shortened trading week with caution, following a strong year-end rally in equities.
S&P 500 futures were little changed at 6,977.0 points, while Nasdaq 100 futures edged 0.1% lower to 25,846.75 points by 20:24 ET (01:24 GMT). Dow Jones futures were also steady at 49,018.0 points.
Market activity is expected to remain subdued, with many investors away ahead of the New Year holidays. Thin trading volumes are likely to limit sharp moves in either direction.
Wall Street closed last week on a strong footing, with the S&P 500 reaching a fresh record high on Friday. Gains were largely driven by a rebound in technology stocks, which had faced pressure earlier in the month.
Large-cap growth shares regained momentum as investors returned to sectors viewed as long-term beneficiaries of artificial intelligence and improving financial conditions. The renewed appetite for risk assets has helped extend the late-December rally.
Investor sentiment has also been supported by expectations that the Federal Reserve is nearing the end of its tightening cycle. Markets continue to price in interest rate cuts next year, with softer inflation data in recent weeks reinforcing expectations that monetary policy could begin easing in 2026.
The year-end advance has renewed focus on the so-called Santa Claus rally, a seasonal trend that typically sees markets rise during the final five trading days of the year and the first two sessions of January.
