After ending yesterday's choppy session modestly lower, stocks may see some further downside in early trading on Wednesday. The major index futures are currently pointing to a slightly lower open for the markets, with the S&P 500 futures down by 0.1 percent.
Stocks may extend the pullback seen over the past few sessions, which has seen the major averages close lower for three straight days as traders cash in on recent strength in the markets.
Despite the recent weakness, the major averages are still poised to post substantial gains for the full year.
The tech-heavy Nasdaq is heading into the final trading day of the year up by 21 percent for 2025, while the S&P 500 is up by 17 percent and the Dow is up by 13 percent.
Overall trading activity is likely to remain subdued, however, as some traders look to get a head start on New Year's Eve celebrations.
On the U.S. economic front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly dipped in the week ended December 27th.
The report said initial jobless claims fell to 199,000, a decrease of 16,000 from the previous week's revised level of 215,000.
Economists had expected jobless claims to rise to 220,000 from the 214,000 originally reported for the previous week.
Following the weakness seen during Monday's session, stocks showed a lack of direction over the course of the trading day on Tuesday. The major averages spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the day modestly lower. The Dow dipped 94.87 points or 0.2 percent to 48,367.06, the Nasdaq slipped 55.27 points or 0.2 percent to 23,419.08 and the S&P 500 edged down 9.50 points or 0.1 percent to 6,896.24.
In overseas trading, stock markets across the Asia-Pacific turned in a mixed performance on Wednesday, with several markets closed for New Year's Eve. China's Shanghai Composite Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index slid by 0.9 percent.
Meanwhile, European stocks have moved modestly lower on the day. While the French CAC 40 Index is down by 0.2 percent and the U.K.'s FTSE 100 Index is down by 0.1 percent, the German markets remain closed on the day.
In commodities trading, crude oil futures are jumping $0.57 to $58.52 a barrel after slipping $0.13 to $57.95 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,339.30, down $47 compared to the previous session's close of $4,386.30. On Tuesday, gold jumped $42.70.
On the currency front, the U.S. dollar is trading at 156.76 yen compared to the 156.39 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is unchanged compared to yesterday's $1.1746.
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December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.