Nasdaq, Dow Jones futures flat as traders eye Fed minutes, year-end risks

• US stocks have underperformed global peers by the widest margin since 2009, despite tech valuations soaring throughout the year
• Fed cut rates for a third time in December but signaled potential slowing or pause in easing for 2026, with 10-year Treasury yields holding above 4.1%
• XTB's Kathleen Brooks notes fading momentum into year-end with markets in consolidation mode during thinner holiday trading conditions

US stock futures remained flat Tuesday morning as markets adopted a cautious stance ahead of the Federal Reserve's December meeting minutes release. Dow Jones, S&P 500, and Nasdaq futures traded near unchanged following Monday's modest pullback driven by technology stock selling pressure.

The Fed minutes, representing one of the final policy signals for the year, will be closely watched after policymakers cut rates for the third consecutive time in December while signaling potential slowdown in easing pace for 2026. Markets are consolidating amid thin holiday trading conditions on the penultimate trading day of 2025.

According to Kathleen Brooks, research director at XTB, global stock indices have lost momentum into year-end despite strong year-to-date returns. She highlighted that US stocks have underperformed global peers by the widest margin since 2009, even as valuations—particularly in technology—have soared. This performance gap has prompted some investors to explore opportunities outside US markets.

Brooks downplayed expectations that the Fed minutes would significantly impact markets, stating they're unlikely to "shift the dial." She identified bond yields as a key risk heading into 2026, with the US 10-year Treasury yield holding above 4.1%.

The muted premarket activity reflects a market in consolidation mode rather than positioned for strong directional moves, with little major economic data remaining on the calendar for year-end. The cautious tone suggests traders are awaiting clearer signals on monetary policy direction and assessing recent losses before making significant positioning changes.