U.S. stock futures are pointing higher at the start of the new year, setting markets up to snap a four-day losing streak as investors return to themes that powered gains through much of 2025.

S&P 500 Futures were up about 0.6% at 6:40 AM ET (11:40 GMT) in New York, while Nasdaq 100 Futures contracts climbed 1.1%. Dow Jones Industrial Average futures added 0.4%.

Trading conditions are expected to remain thin, with many investors yet to return from the holiday break and fuller participation unlikely until early next week. Still, strategists at Deutsche Bank cautioned against reading too much into the early move.

“We shouldn’t extrapolate too far, as the first trading day has been an incredibly poor guide in recent times to how the rest of the year plays out,” strategists including Jim Reid wrote.

Still, the rebound reflects renewed appetite for the forces that dominated last year, particularly enthusiasm for artificial intelligence-linked stocks that helped drive all three major U.S. indexes to record highs in 2025.

That momentum faded into year-end, however, with the S&P 500, Nasdaq and Dow all posting declines over the final four sessions of 2025. The pullback ran counter to expectations for a so-called Santa Claus rally, which typically sees stocks rise over the last five trading days of December and the first two sessions of January.

The broader global backdrop remains supportive. Asian equities hit fresh records overnight, led by gains in chipmakers and AI-related names. Even so, some strategists are urging caution. Barclays warned that equity markets could turn choppy as they enter 2026 at elevated levels that are “over reliant on AI success.”

The bank nonetheless expects further gains over the year, citing resilient corporate earnings and a favorable balance between economic growth and monetary policy.

Looking ahead, investors see U.S. monetary policy as a key driver. Expectations of a more dovish Federal Reserve, reinforced by recent economic data and speculation around future leadership, have led markets to price in additional rate cuts, setting the tone for global assets in 2026.