ASX tipped to open weaker after tech stocks lift Wall Street

The S&P 500 added 0.4 per cent. The Nasdaq 100 climbed 0.7 per cent. The Dow Jones Industrial Average wavered.

Qualcomm climbed after prevailing at trial against Arm Holdings’ claim that it breached a license for chip technology. Rumble soared on news that crypto stablecoin firm Tether will buy a stake in the video-sharing platform.

Meanwhile, US retail giant Nordstrom is going private after the founding Nordstrom family, which owns a 33 per cent stake in the company, teamed up with Mexican retail investor El Puerto de Liverpool on the deal.

Treasury 10-year yields advanced seven basis points to 4.59 per cent. The Bloomberg Dollar Spot Index rose 0.3 per cent.

The S&P 500 is on its way to record a stellar annual return and back-to-back years of more than 20 per cent gains. The index has risen about 25 per cent since the end of 2023, with the top seven biggest technology stocks accounting for more than half of the advance.

“Last week’s action should mark the end of the recent pullback and allow a ‘Santa Claus Rally’,” said Jonathan Krinsky at BTIG. “We do think a deeper correction early in ’25 is likely, albeit from a new all-time high.”

The prospect or not of a “Santa Claus Rally” during a seven-day period, which includes the last five trading days of the old year and the first two of the new one, continues to be a barometer of investors’ optimism into the new year.

Bloomberg L.P.