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Crypto stocks trade higher tracking bitcoin prices

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VeriSign ( VRSN ) up after Berkshire Hathaway ( BRK/A ) ups stake

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Futures up: Dow 0.17%, S&P 500 0.23%, Nasdaq 0.23%

(Updates before markets open)

By Johann M Cherian and Pranav Kashyap

Dec 31 (Reuters) - Wall Street's main indexes were set

to start the last trading session of 2024 slightly higher,

continuing its bull run from more than two years ago on signs of

post-pandemic economic resilience, hopes of lower borrowing

costs and AI boost.

The S&P 500, Dow and Nasdaq are near

record highs and are set for their second consecutive year of

gains.

A nearly 100-basis point cut in interest rates in 2024 by

the Federal Reserve and a rally in technology stocks in

anticipation of boost to corporate profits from artificial

intelligence have catapulted equities to record highs in 2024.

The tech, communications services and

consumer discretionary stocks have advanced more than

30% this year.

Although AI poster-child Nvidia's ( NVDA ) nearly 170% surge

this year was smaller compared with last year, the rally helped

the company notch $3 trillion in market value, while Tesla

reclaimed $1 trillion level.

At 08:23 a.m. ET, Dow E-minis were up 71 points, or

0.17%, S&P 500 E-minis were up 13.75 points, or 0.23%

and Nasdaq 100 E-minis were up 48.25 points, or 0.23%.

Nvidia ( NVDA ) was up 0.7%, while the Elon Musk-led automaker added

1.2% in premarket trading. Moves are expected to be influenced

by thin volumes ahead of New Year's holiday on Wednesday.

Toward the end of the year, risk-taking improved as Donald

Trump's presidential win boosted bets that he would deliver on

his promises to ease regulations, cut taxes and raise tariffs to

help domestic businesses.

His win also powered small-cap stocks. The Russell 2000

clinched a record high and was set for a second straight

year of gains with a nearly 10% increase. Bank shares

are up more than 30% this year.

However, equities hit a rough patch in December, putting

the S&P 500 on course for its biggest monthly decline since

April, due to higher yields on Treasury notes at a time when

equity valuations are stretched and the Fed is cautious.

The yield on benchmark 10-year note eased to

4.5% as inflationary concerns linked to Trump's policies raises

chances of the Fed moderating its rate cuts in 2025.

"Any further gains in equities are unlikely until there is

more clarity about what the incoming administration's tax and

tariff policies will look like," said Raffi Boyadjian, lead

market analyst at brokerage XM.

"How earnings expectations evolve in the coming months will

also be crucial for Wall Street, particularly for tech and AI

stocks."

Traders expect the first rate cut of 2025 in either March or

May. Meanwhile, Trump's win has invigorated crypto stocks, with

Bitcoin hitting $100,000.

MicroStrategy ( MSTR ) shares have more than tripled in

value this year as it continues buying and holding bitcoin. The

stock rose 4.5% on Tuesday, while Coinbase and MARA

Holdings ( MARA ) added 2.6% and 2.5%, respectively.

VeriSign ( VRSN ) rose 2.1% after Berkshire Hathaway ( BRK/A )

increased its stake in the internet services company.

Other areas of the market, however, have witnessed annual

declines, with materials stocks down more than 2%,

hurt by the economic woes in top metals consumer China.