Technology stocks led the way as U.S. stock futures soared on Thursday, getting the new year off to a flying start as Wall Street returned from vacation.

Contracts tied to the S&P 500 (ES=F) rose 0.7%, while Dow Jones Industrial Average futures (YM=F) rose 0.6%. Futures on the tech-heavy Nasdaq 100 (NQ=F) rose 0.9% as traders returned from Wednesday’s holiday close.

Markets are eyeing a comeback after a year-end decline earlier in the week dashed hopes of a “Santa Claus rally.” But the decline capped the trough for U.S. stocks in 2024, as the S&P 500 (^GSPC) posted gains of over 20% for two straight years – something it hadn’t achieved in nearly three decades.

Several Big Tech stocks rose in early morning trading, with shares of Nvidia (NVDA), Amazon (AMZN) and Meta (META) all rising as optimism around artificial intelligence crept back in. Investors have debated what role the “Magnificent Seven” play. Stocks will boost markets in 2025 after massive outperformance last year.

During the holiday week, U.S. mortgage rates rose to 6.97%, reaching their highest level since early July, data showed. According to the Mortgage Bankers Association, the increase weighed on applications for home purchases and refinancing.

Weekly jobless claims fell to their lowest level since March. Data released Thursday morning by the Labor Department showed claims at 211,000, down from the previous week’s upwardly revised level of 220,000. Meanwhile, ongoing claims for the week ending December 21 fell to 1,844,000, a decline of 52,000 from the previous week’s level.

On the corporate front, shares of Apple (AAPL) fell after the iPhone maker offered rare discounts on its latest models in China, reflecting increasing competition from local handset makers. Meanwhile, shares of Alibaba (BABA, 9988.HK) fell as markets absorbed news that the Chinese e-commerce giant will sell its stake in hypermarket chain Sun Art (SURRY, 6808.HK) at a steep discount .

Shares of Tesla (TSLA) rose ahead of the electric vehicle maker’s release of fourth-quarter delivery data and after a Cybertruck exploded in Las Vegas on Wednesday, killing its driver. The FBI is investigating whether the explosion outside the Trump International Hotel was an act of terrorism.

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