(Reuters) – U.S. index futures edged lower on Thursday in light trading volume after the Christmas holiday, as investors took stock of their portfolios and looked for a boost heading into the final month of the year from the so-called Santa Claus rally.

Heavyweight Nvidia fell 1.1 percent in premarket trade, while Google parent Alphabet fell 0.5 percent.

As of 05:03, the Dow E-minis were down 146 points, or 0.33%, the S&P 500 E-minis were down 26.75 points, or 0.44%, and the Nasdaq 100 E-minis were down 118 .75 points, or 0.54%.

Markets in London and parts of Asia were closed on Thursday.

The S&P 500 and Nasdaq ended Tuesday’s truncated session with a third straight session of gains led by megacaps and growth stocks.

Gains in Apple, Tesla, Alphabet, Amazon, Nvidia, Microsoft and Meta platforms accounted for more than half of the S&P 500’s 28.4% total return this year, according to S&P Dow Jones senior index analyst Index Howard Silverblatt.

Without Magnificent Seven stocks, the benchmark’s total return would have been 13.2% in 2024, Silverblatt added.

US stocks hit a speed bump this month after gains fueled by November’s election as they grapple with the Federal Reserve’s projection of fewer interest rate cuts in 2025.

Investors expect a typically strong finish in the final days of the year – dubbed a “Santa Clause rally” – a pattern attributed to low liquidity, tax loss harvesting and the investment of year-end bonuses.

The S&P 500 has gained an average of 1.3% over the last five trading days of December and the first two days of January since 1969, according to the Stock Trader’s Almanac. A December without a Santa rally has been followed by a weaker-than-average year, LPL Financial data dating back to 1950 showed.

Labor Department data on weekly jobless claims is due before the market opens on Thursday, though claims have entered a period of volatility that could make it difficult to get a clear view of the labor market

Separately, major banks and business groups sued the Federal Reserve on Tuesday, claiming the U.S. central bank’s annual “stress tests” of Wall Street firms violate the law.

(Reporting by Medha Singh in Bangalore; Editing by Anil D’Silva)