Tags: financial market

Dow Gains 159 Points, S&P Near All-Time High

Dow Gains 159 Points, S&P Near All-Time High
Trader on the floor of the New York Stock Exchange (AP)

Tuesday, 26 December 2023 04:08 PM EST

U.S. stocks extended their rally Tuesday, kicking off the final week of 2023 with expectations that the Federal Reserve will begin cutting interest rates as soon as March.

All three major U.S. stock indexes rose in light trading, with the S&P 500 touching its highest intraday level since January 2022. All three are on track for monthly, quarterly and annual gains.

Interest rate sensitive megacap stocks and chip shares led the upward momentum.

On Friday, the three indexes notched their eighth straight weekly gains - their longest weekly winning streaks in years - as economic data indicated inflation is easing down closer to the Fed's average annual 2% target.

"It's going to be a fairly quiet trading session. The momentum stays towards the upside, but I don't think we're going to see any strong volume that would suggest we could be in for a strong rally," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"We had a good inflation number on Friday. If inflation continues to move down in January and February, there's a good chance that the Fed may cut (rates) earlier than anticipated."

The S&P 500 is on track to post its biggest quarterly gain in three years, and is within 1% of its all-time closing high reached in January 2022.

Closing above that level - 4,796.56 - would confirm the benchmark index has been in a bull market since touching the bear market nadir, the closing low reached in October 2022.

Stocks' eight-week rally shifted into overdrive two weeks ago after the Fed signaled the end of its rate hike cycle and opened the door to potential rate cuts in 2024.

At last glance, markets had baked in a 72.7% likelihood of a 25 basis point reduction in the Fed funds target rate as soon as March, according to CME's FedWatch tool.

According to preliminary data, the S&P 500 gained 20.31 points, or 0.43%, to end at 4,774.94 points, while the Nasdaq Composite gained 81.97 points, or 0.55%, to 15,074.95. The Dow Jones Industrial Average rose 160.69 points, or 0.43%, to 37,546.66.

Energy shares enjoyed the heftiest percentage gain, boosted by surging crude prices as Middle East strife ratcheted up supply concerns, while optimism over Fed rate cuts fueled demand hopes.

Shares of Manchester United rose after billionaire Jim Ratcliffe struck a long-awaited deal to buy a 25% stake in the soccer club at $33 per share.

Gracell Biotechnologies surged after AstraZeneca said it will buy the China-based firm for up to $1.2 billion.

Intel Corp advanced following the Israeli government's agreement to endow a $3.2 billion grant for a $25 billion plant the chipmaker plans to build in southern Israel.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
U.S. stocks extended their rally Tuesday, kicking off the final week of 2023 with expectations that the Federal Reserve will begin cutting interest rates as soon as March.
financial market
449
2023-08-26
Tuesday, 26 December 2023 04:08 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved