Wall Street's Year-End Surge Faces Uncertainty

U.S. stock index futures remain calm ahead of a shortened trading session, with expectations of low volumes. Recent gains faced hurdles due to interest rate concerns. The 'Santa Clause rally' period is underway, though skepticism persists about further Wall Street highs amid high valuations.

As U.S. stock index futures stay subdued ahead of Tuesday's abbreviated trading session, Wall Street enters a historically strong period, aiming to continue its streak of consecutive annual gains.

Despite the optimism of the 'Santa Clause rally', trading volumes are anticipated to be light, which could lead to volatile market conditions in the year's remaining days. Markets will close early on Tuesday, remaining shut on Christmas Day.

Recent market dynamics have been largely influenced by rising interest rate expectations following the U.S. Federal Reserve's recent decision, with analysts signaling caution amidst expensive valuations and concerns over the health of key stock indices.

(With inputs from agencies.)