Dec 28, 2023: U.S. stocks saw a marginal rise, marking the culmination of a strong year on Wall Street as the trading day progressed toward a year-end close. As of 09:35 ET (14:35 GMT), the Dow Jones Industrial Average increased by 55 points (0.1%), the S&P 500 rose 7 points (0.2%), and the NASDAQ Composite climbed 30 points (0.2%).
Wednesday also witnessed positive sessions, with the Dow Jones Industrial Average gaining over 110 points (0.3%), the S&P 500 rising 0.1%, and the Nasdaq Composite climbing 0.2%.
This momentum positions the indices for their ninth consecutive week of gains, showcasing an impressive late-year rally. The DJIA and S&P 500 are set to close 2023 up by 13% and 24%, respectively, with the latter almost reaching its highest closing level since January 2022. The Nasdaq Composite notably surged by 44%, driven by a resurgence in mega-cap tech names.
Rise in Jobless Claims: Market optimism about an early 2024 Fed interest rate cut has been a driving force behind these gains. The market is heavily pricing in an 88% chance of a Fed cut in March 2024, and futures indicate an expectation of more than 150 basis points of easing in the upcoming year.
Recent data revealed an increase in Americans filing initial claims for unemployment benefits last week, rising by 12,000 to 218,000. This uptick indicates a continuing cooling of the labor market in the fourth quarter of the year.