The S&P 500 rose 0.2%. The Dow Jones Industrial Average rose 75 points, or 0.2%. The Nasdaq composite rose 0.3%. The broader market remained mostly quiet ahead of the final trading day of the year. The S&P 500 is on track for its ninth straight week of gains and is up more than 24%. The two-month rally has also pushed the benchmark index closer to breaking its all-time high set in January of 2022.
Quick Read
- S&P 500 Gains: The S&P 500 index rose by 0.2%.
- Dow Jones and Nasdaq Growth: The Dow Jones Industrial Average increased by 75 points (0.2%), and the Nasdaq composite grew by 0.3%.
- Continued Market Rally: The S&P 500 is nearing its ninth consecutive week of gains and is close to surpassing its all-time high from January 2022, with a more than 24% increase this year.
- Nasdaq’s Impressive Yearly Performance: The Nasdaq has seen a significant rise, gaining over 44% this year.
- Bond Yield Increase: The yield on the 10-year Treasury note, which affects mortgage rates, climbed to 3.82% from 3.79%.
- Asian and European Markets: Asian markets generally gained, except for Tokyo’s Nikkei 225, which fell by 0.4%. European markets experienced a decline.
- Stable U.S. Jobs Market: Despite a slight increase in unemployment benefits claims, the U.S. labor market remains robust throughout 2023, supporting the economy.
- Corporate News: Apple shares went up by 0.5% following a federal court’s decision to temporarily lift a sales ban on two of its high-end Apple Watch models.
- Upcoming Corporate Financial Reports: Companies in the S&P 500 are nearing the end of their financial quarter, with results expected in January. They have shown strong profit gains this year, boosting optimism for the economy’s strength into 2024.
- Economic Outlook and Federal Reserve’s Position: Recent economic data suggest the possibility of avoiding a recession. Wall Street anticipates that the Federal Reserve will shift from raising interest rates to cutting them in the new year, with potential rate cuts starting as early as March.
- Inflation Trends: Inflation, which has been decreasing since 2022, is expected to continue cooling into the next year.
The Associated Press has the story:
Stocks edge higher in muted holiday trading on Wall Street
Newsslooks- NEW YORK (AP)
The S&P 500 rose 0.2%. The Dow Jones Industrial Average rose 75 points, or 0.2%. The Nasdaq composite rose 0.3%.
The broader market remained mostly quiet ahead of the final trading day of the year. The S&P 500 is on track for its ninth straight week of gains and is up more than 24%. The two-month rally has also pushed the benchmark index closer to breaking its all-time high set in January of 2022.
Every other major index is also on track for a strong finish to year of solid gains. The Nasdaq has outpaced the broader market and is up more than 44% for the year.
Bond yields rose. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3.82% from 3.79 late Wednesday.
Markets in Asia gained ground. Tokyo’s Nikkei 225 index was an outlier in Asia, shedding 0.4%. Speculation over whether and when the Bank of Japan might ease its longstanding lax monetary policy and raise its key interest rate from minus 0.1% has kept stocks wobbling in the world’s third-largest economy.
Markets in Europe fell.
There are few economic indicators out of Washington this week. The latest weekly report on unemployment benefits showed that applications rose last week, but not enough to raise concerns about the labor market or broader economy. The overall jobs market has been strong throughout 2023 and has been a driving force for the economy.
There was also a lack of big corporate news for investors.
Two higher-end models of the Apple Watch can go on sale again after a federal court temporarily lifted a sales halt ordered by the International Trade Commission due to a patent dispute. Apple rose 0.5%.
Companies are close to wrapping up their latest financial quarter and the next big batch of news will come when they start releasing those results later in January. Overall, companies in the S&P 500 have notched a strong year of profit gains, giving Wall Street more hope for the economy to remain strong into 2024.
Economic data over the last few months have raised hopes that the economy can dodge a recession. Wall Street is betting that the Federal Reserve is done raising interest rates and will likely shift to rate cuts in the new year. The central bank has held rates steady since its meeting in July, and Wall Street expects it to start cutting rates as early as March.
Inflation has been steadily easing since 2022 and is expected to continue cooling into next year.
