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Intel ( INTC ) falls after report Nvidia stopped testing 18A chipmaking tech

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Nike ( NKE ) up after Apple CEO buys $3 million shares

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Three main indexes set for third straight yearly gains

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U.S. stock index futures flat

(Updates with pre-opening prices)

By Sruthi Shankar and Shashwat Chauhan

Dec 24 (Reuters) -

Wall Street was set to open nearly flat in shortened Christmas Eve trading on Wednesday, as

traders wait to see whether stocks can extend record gains in ‌a seasonally strong stretch for

markets.

The benchmark S&P 500 hit a record closing high on Tuesday, lifted by megacap

technology stocks, while a clutch of data painted ​a mixed picture of the U.S. economy and kept

expectations for monetary easing next year largely intact.

The U.S. economy ‍grew at its fastest pace in two years in the third quarter, according ⁠to

Tuesday's government data, which was ⁠delayed by a 43-day federal shutdown. However, worsening

consumer confidence in December and a flat reading on November factory production tempered the

outlook.

Data on Wednesday showed ‌new applications for U.S. jobless benefits unexpectedly fell last

week.

"Despite ongoing ​seasonal volatility, initial jobless claims remain in ranges consistent

with relatively steady labor market conditions and don't change our outlook for the labor market

or Fed policy," said Nancy Vanden Houten, Lead ⁠Economist at Oxford Economics.

Traders are still pricing in two ‍25-basis-point interest rate ​cuts by the end of 2026, as

per LSEG data, although they pulled back the odds of such a move in January to 13% from 18%

before the data.

Recent gains in U.S. stocks have spurred ‍hopes of a "Santa Claus rally", a seasonal

phenomenon where the S&P 500 posts gains in the last five trading days of the year and the first

two in January, according to Stock Trader's Almanac.

The period begins on Wednesday and runs through January 5.

Wall Street's "fear gauge" was hovering near its lowest since December 2024.

Trading volumes are likely to stay thin, with U.S. stock markets set to close at 1 p.m. ET

(1800 GMT) on Wednesday and remain shut ​on Thursday for ‍Christmas.

By 8:43 a.m. ET, S&P 500 e-minis were up 0.5 points, or 0.01%, Nasdaq 100 e-minis

added 8.75 points, or 0.03% and Dow e-minis climbed 1 point.

U.S. equities swung sharply this year as ​tariff-related headlines, concerns about high

valuations in technology and AI companies and rapidly shifting interest-rate expectations

boosted volatility.

Still, the

bull market

that began in October 2022 stayed intact as optimism around AI, interest-rate cuts and a

resilient economy supported sentiment with all three main indexes set for their third straight

yearly gain.

In the year ahead, global markets will be closely watching who might replace Fed Chair

Jerome Powell, after President Trump

said Tuesday

that anyone who disagrees with him would "never be the Fed Chairman."

Among single stocks, Nike ( NKE ) climbed 2.8% in premarket trading after ​Apple CEO Tim

Cook, the sportswear giant's lead independent director, bought about $3 million of shares.

Intel ( INTC ) fell 3.3% following a report that said Nvidia has halted tests to manufacture

on Intel's ( INTC ) 18A chipmaking node after initial tests.

Dynavax Technologies ( DVAX ) surged about 40% after French drugmaker Sanofi said

it would buy the ‍U.S. vaccines company for around $2.2 billion (1.9 billion euros).