Stock futures hovered near the flatline Tuesday.

Futures tied to the Dow Jones Industrial Average was flat. S&P 500 futures and Nasdaq-100 futures inched 0.03% and 0.04% higher respectively.

Stocks are coming off a winning session. The S&P 500 added 0.45%, putting it 1.2% away from its all-time closing high of 4,796.56 reached in January 2022. The tech-heavy Nasdaq Composite gained 0.6%, while the 30-stock Dow added 0.86 point.

Stocks have hit rally mode as of late, with last week’s indication of three likely interest rate cuts from the Federal Reserve in 2024 providing another catalyst for the market. Signs of cooling inflation and a pullback in Treasury yields have also helped risk assets.

“Markets are celebrating right now, not only disinflation, but the soft landing scenario,” Emily Roland, co-chief investment strategist at John Hancock Investment Management said on CNBC’s “Closing Bell: Overtime” on Monday. “The Fed had indicated that they feel that we’re landing on soft landing island here, and we’re seeing risk assets participating across the board.”

All three major averages on pace to finish December with gains. The S&P 500 is up 3.8% for the month and coming off its longest weekly winning streak since 2017. The Nasdaq and Dow are up 4.8% and 3.8%, respectively.

A light week for economic data and earnings continues Tuesday with preliminary building permits data for November and housing starts. Earnings from FedEx are also on deck after the bell.

Atlanta Fed President Raphael Bostic is also slated to speak.

By Admin

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