U.S. stock index futures were little changed on Tuesday as Wall Street wrapped up a banner year that saw equities surge to record highs, overcoming concerns about the economy and a trade fight with China.
Dow Jones Industrial Average futures were down just 2 points as of 8:12 a.m. ET. S&P 500 and Nasdaq 100 futures also dropped marginally. Futures dipped after President Donald Trump tweeted Iran was responsible for an attack on the U.S. embassy in Iraq. Earlier in the day, they pointed to slight gains at the open.
Tuesday’s dip comes after the market’s worst day since early December. The Dow dropped 183 points, or 0.6% on Monday. The S&P 500 and Nasdaq pulled back 0.5% and 0.6%, respectively.
Still, the major averages remained on track for strong annual gains. The S&P 500 entered Tuesday’s session up 28.5% for 2019, on pace for its biggest one-year gain since 2013, when it rallied 29.6%. The broad index was also within striking distance of its 1997 surge of 31%.
“We climbed a wall of worry, from a growth slowdown and profits flat at best, trade concerns, potential impeachment, and high valuations bothering investors — including myself,” said Ned Davis, founder of Ned Davis Research, in a note.
Stocks surged in 2019 despite the ongoing U.S.-China trade war as the Federal Reserve cut rates three times while consumer sentiment remained high. Trade tensions also declined in the fourth quarter after China and the U.S. agreed to sign a so-called phase one trade deal sometime next month.
“That one’s in the bank,” White House advisor Peter Navarro told CNBC’s “Squawk Box” about the phase-one agreement. “We’re just waiting for the Chinese translation of the 86-page agreement and I’m trying to figure out whether it’s going to be more pages or less in Chinese.”
Apple and Microsoft led the way higher for stocks in 2019, rallying 84.4% and 55.2%, respectively. They are the best-performing Dow stocks of the year and accounted for about 15% of the S&P 500’s overall gains for 2019.
Chipmakers Advanced Micro Devices, Lam Research and KLA Corp. were the best-performing S&P 500 stocks in 2019. AMD and Lam Research both rose more than 100% for the year while KLA surged 99.3%. Retailer Target and fast-casual dining chain Chipotle Mexican Grill also rallied more than 90% this year.
Tuesday also marked the final trading day of the decade. Over the past 10 years, the S&P 500 has surged more than 188%. The broad index’s total return — which includes dividends — tops 255% for the decade.
