US stock index futures rise before a holiday-shortened week as Oracle and Nvidia stage a rebound.

US stock futures pointed to a positive start to the week as investors look ahead to a holiday-shortened trading period and the possibility of a Santa Claus rally. Technology stocks—particularly those tied to artificial intelligence—are showing signs of recovery, fueling expectations of gains in the final days of December and early January, a stretch that has historically delivered strong returns.

Futures edged higher late Sunday, December 22, reflecting cautious optimism. Dow Jones futures rose 83 points, or 0.2%, while S&P 500 and Nasdaq 100 futures advanced 0.2% and 0.3%, respectively. The move follows a mixed performance last week, with the S&P 500 and Nasdaq Composite posting their third gains in four weeks, up 0.1% and 0.5%, even as the Dow fell 0.7%, snapping a three-week winning streak.

Artificial intelligence stocks led a late-week rebound. Oracle shares jumped after news that TikTok agreed to sell its US operations to a joint venture involving Oracle and Silver Lake, while Nvidia also staged a strong recovery. The renewed strength in AI names helped support broader indices despite recent sector underperformance, as investors weigh valuation concerns and rotation into more attractively priced segments.

The much-watched Santa Claus rally—defined as gains during the last five trading days of December and the first two sessions of January—has historically delivered average returns of about 1.3% for the S&P 500 since 1950, according to the Stock Trader’s Almanac.