U.S. Futures Steady as Investors Await Shutdown-Delayed GDP Report

Key Moments

GDP Data in Focus as Futures Point to Quiet Open

U.S. equity futures indicated a muted start to trading in the final full session before Christmas, with investors waiting for the long-delayed third-quarter U.S. GDP report that had been pushed back by a government shutdown. Market participants were looking to the data for a clearer picture of the economy’s underlying strength.

S&P 500 Futures and Nasdaq 100 Futures showed little movement at around 5:50 ET (10:50 GMT) in New York. This followed a three-session advance that had only just pushed U.S. stocks back into positive territory for the month.

If those gains are maintained through the end of December, it would represent an eighth straight monthly rise for U.S. equities, which would be the longest such streak since 2018.

Volatility Gauge Near Year-Low as Sentiment Holds Firm

The CBOE Volatility Index, a widely watched barometer of expected stock market swings, declined to 14.11, placing anticipated volatility over the coming month close to its lowest reading in more than a year. The lower volatility backdrop reflects steady confidence among investors, underpinned by expectations of resilient corporate earnings, moderating inflation pressures, and prospects for a soft landing in the broader economy.

With trading volumes expected to thin around the holidays, overall activity is likely to remain subdued, potentially amplifying the market’s reaction to incoming economic data. Any unexpected developments in the macro numbers could challenge the recent equity advance, but for now, sentiment appears broadly constructive as the year nears its end.

Major Indexes Extend Gains, Led by Technology

Earlier in the day, all three primary U.S. equity benchmarks moved higher. The S&P 500 rose about 0.5%, the NASDAQ Composite also increased 0.5%, and the Dow Jones Industrial Average advanced 0.6%.

Attention is now shifting to a holiday-shortened trading week that is anticipated to see lighter participation. U.S. markets are scheduled to close early on Wednesday and remain closed on Thursday for Christmas Day.

Technology names, especially semiconductor stocks, were among the session’s strongest performers and continued to lend support to the broader market tone. Chipmakers extended a recent rebound after having come under pressure earlier in the month, when worries about stretched valuations linked to artificial intelligence, as well as uncertainties around long-term funding and capital expenditure plans, weighed on the group.

Rate-Cut Expectations and Fed Leadership in the Spotlight

Equities also drew support from U.S. consumer price data released last week, which came in weaker than anticipated and reinforced the view that inflation pressures are easing more convincingly.

The softer CPI print encouraged traders to move forward expectations for interest rate cuts, with markets now assigning a higher probability to a quicker pace of easing by the Federal Reserve in 2026.

Investors were additionally monitoring developments around the Federal Reserve’s leadership transition for signals on the future policy path. With current Fed Chair Jerome Powell’s term set to conclude in May and President Donald Trump interviewing several finalists, market participants were trying to assess how potential changes at the top of the central bank could influence the policy trajectory.