By Stephen Culp NEW YORK (Reuters) -Wall Street stocks headed lower on Thursday and U.S. benchmark Treasury yields scaled the highest level since April in light, post-Christmas trading. The modest but broad-based sell-off pulled all three major U.

Yes. The New York Stock Exchange and Nasdaq will both operate on half-day schedules, closing at 1 p.m., while bond markets will shut down at 2 p.m., and major U.S. financial markets will stay closed until Thursday’s normal trading session.

Stocks have seen a stellar 2024, but the S&P 500 is in danger of a rare December loss. It’s all riding on the so-called Santa Claus rally.

U.S. equity futures moved lower in early Thursday trading, while Treasury bond yields remained elevated in the wake of the Federal Reserve's cautious rate stance, as investors hit pause on the early Santa Claus rally.

US stocks looked set for a mostly muted open to a final, shortened trading session before the Christmas holiday,

"Stocks tend to do well in the absence of news and this is why strength around holidays tends to occur," Ryan Detrick said.

Learn all about the Santa Claus Rally, a seasonal stock market trend with historical significance. Discover why it happens and some tips.

Wall Street is eager for a so-called Santa Claus rally to propel the S&P 500—up about 25% this year through Monday's close—to new highs. According to Wall Street lore, the stock market consistently rises during the final five trading days of the year and the first two sessions of the next. This year, that stretch starts today.

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has advanced 34% year to date, and history says that momentum may carry into 2025. Since its inception in 1971, the Nasdaq has returned at least 20% in 20 years, and at least 30% in 12 years. After a 20%-plus gain in a calendar year: The Nasdaq has returned an average of 17% during the next year.

Some of the biggest winners were mega-cap tech stocks, with Tesla up 6%, while Broadcom, Netflix, and Amazon each gained about 2%.