Stock futures were flat Tuesday on Christmas Eve after all three major averages kicked off the holiday-shortened trading week in the green.

Futures linked to the S&P 500 and the Dow Jones Industrial Average futures remained around the flatline. Nasdaq 100 futures added 0.04%.

American Airlines shares fell as much as 3% in light premarket trading after the Federal Aviation Administration said the carrier grounded all flights in the U.S. due to a technical issue on one of the busiest travel days of the year. The stock pared losses after the carrier lifted the ground stop.

Trading is expected to be thin this week. On Tuesday, the New York Stock Exchange closes early at 1 p.m. ET for Christmas Eve, while the bond market closes at 2 p.m. The market is also closed on Wednesday for Christmas Day.

The stock market began the holiday-shortened week on a positive note, aided by tech names and semiconductor stocks. The S&P 500 rose 0.7% and the Nasdaq Composite closed Monday about 1% higher. The 30-stock Dow also finished up nearly 0.2%.

Frost ahead for the Santa Claus rally?

With few trading days in store, some investors are hoping for a Santa Claus rally to conclude what has already been a strong year for the market. And that's not completely out of the ordinary. According to the Stock Trader's Almanac, the S&P 500 has gained 1.3% on average between the last five trading days of the year and the first two in January, dating back to 1969.

But Jay Hatfield of Infrastructure Capital Advisors is calling for a bit of a stall in the market over the coming days. He is sticking with his year-end 2024 S&P 500 target of 6,000, which implies only a 0.4% increase for the broad market index from Monday's close.

"We might get a Santa Claus rally, but those aren't that powerful [of] rallies," the firm's CEO told CNBC. "We're neutral on the market."

10-year Treasury yield hits highest level since May

Treasury yields continued to rise this week, following a big jump last week triggered by the Federal Reserve's updated rate-cut outlook for 2025.

The 10-year yield climbed another 3 basis points to 4.613%, hitting its highest level since May 30. The 30-year yield rose to 4.808% Tuesday to reach its highest level since April 26.

— Yun Li

American Airlines ground stop lifted

American Airlines recovered in Tuesday's premarket after a ground stop impacting flights was cancelled. Shares were last down 0.7%.

— Alex Harring

American Airlines shares fall as technical issue impacts flights

American Airlines shares slid more than 3% in premarket trading after the company said Tuesday morning that an unspecified technical issue has impacted all flights.

American has asked for a nationwide ground stop, according to the Federal Aviation Administration. This comes amid the busy holiday travel season.

— Alex Harring

Honda keeps rising in premarket

U.S.-listed shares of Honda Motor added more than 2% in Tuesday's premarket trading, building on its recent rally.

Honda has popped after announcing official talks to merge with Nissan. The automaker's U.S.-listed shares have climbed more than 12% since the current trading week began.

— Alex Harring

Big retail ETF limps into the holiday season

It's been a rocky December for the SPDR S&P Retail ETF (XRT), which is off more than 3% this month alone.

Notable losers in the ETF during the period include Signet Jewelers, down 19%, and Foot Locker, which is off more than 14% in December. Clothing company Guess is also off 13% this month.

Not all constituents in the retail ETF are on pace for a losing month, however. The top performer of the bunch is Ollie's Bargain Outlet, up nearly 19% in December. Academy Sports and Outdoors and Five Below are each up 16% this month.

—Jason Gewirtz, Darla Mercado

Investors are 'too pessimistic about inflation,' Jay Hatfield says

The inflationary pressures that could likely come as a result of President-elect Donald Trump's tariff plans may not be all that impactful, according to Infrastructure Capital Advisors' Jay Hatfield.

The firm's CEO thinks investors may be missing the deflationary element present in the dollar's gains. His remarks come as the dollar index, which inched higher on Monday, has risen more than 6% year to date.

"In general, investors are too optimistic about growth and too pessimistic about inflation," Hatfield said in an interview with CNBC. "It's kind of irrational for investors to fear inflation from tariffs, but yet the dollar has already wiped out all of the potential – or most of the potential – increase in prices."

Late last month, Trump vowed to raise tariffs by an additional 10% on goods from China, as well as a 25% duty on goods from Mexico and Canada.

During his campaign for president, Trump threatened imposing a tariff of 60% on Chinese goods.

"If the Trump administration raises tariffs 10%, but the dollar is appreciated 10%, that shouldn't have any significant impact," Hatfield continued.

— Sean Conlon

Stock futures open little changed

U.S. stock futures opened relatively unchanged Monday evening.

S&P 500 futures, as well as Nasdaq 100 futures, traded just above the flatline. Futures tied to the Dow Jones Industrial Average gained 31 points, or about 0.1%.

— Sean Conlon