UPDATE: Futures trading shows a significant decline this morning, as the U.S. markets prepare for the final trading days of 2025. With only two days left in the year, analysts are eyeing a potential third consecutive year of double-digit returns across major indexes, but today’s early indicators suggest a rocky finish.
As of 3:28 a.m. ET, the major stock indexes are down slightly, reflecting a trend that has emerged since the Christmas holiday. On Monday, a staggering 65.8% of stocks, approximately 3,645 issues, faced declines, signaling uncertainty among investors.
Despite the recent downturn, financial experts, including Charley Blaine, highlight that the overall sentiment remains optimistic for 2026. An informal poll of over 20 leading analysts indicates a historic year may be on the horizon, with potential double-digit gains that would mark the first time since 2003-2007.
However, this bullish outlook comes with caution. Analysts point to several headwinds, including Federal Reserve policy changes, ongoing AI optimism, and mixed earnings growth. These factors combined with a sluggish consumer backdrop could challenge the current rally. As we approach the New Year, the market’s ability to maintain its momentum is under scrutiny.
Investors are advised to stay alert as the market remains open for two more full trading days, contrary to earlier misconceptions about half-day operations on December 31. This provides a critical window for traders to lock in gains and engage in loss harvesting as the year concludes.
Today’s economic calendar is modest yet significant. Key data points include the FOMC Minutes scheduled for 2:00 p.m. ET and the Chicago PMI at 9:45 a.m. ET, which could influence trading strategies.
On the earnings front, it’s a quiet day with no major announcements from companies exceeding a market cap of $1 billion. However, the financial sector, specifically Financials (XLF) and Regional Banks (KRE), has shown impressive monthly gains of 4.59% and 3.55% respectively, compared to the S&P 500’s modest 1.37%.
As we head into 2026, traders and investors should remain vigilant. The upcoming earnings reports, particularly from major banks, will be closely watched. With the market’s future hanging in the balance, today is critical for positioning ahead of the New Year.
Stay tuned for live updates as we monitor the evolving market situation and prepare for what could be a significant shift in 2026.
