S&P500 rises to less than 1% below it's all-time high
Stocks rose to start the last week of the year, pushing the S&P 500 closer to record levels.
The S&P 500 climbed 0.42% to end at 4,774.75, while the Nasdaq Composite advanced 0.54% to settle at 15,074.57. The Dow Jones industrial Average gained 159.36 points, or about 0.43%, to close at 37,545.33. The Nasdaq 100 gained 0.6% and notched an all-time high and record close, ending the session at 16,878.46.
Despite weaker volume, Tuesday’s moves likely signal a continuation of the positive market trends boosting major indices in recent weeks.
The S&P 500 also came into Tuesday’s session within striking distance of record levels. The broad market index is less than 1% below its closing all-time high of 4,796.56 set in January 2022.
Wall Street came into the holiday-shortened week with momentum, after the S&P 500 on Friday registered its eighth straight weekly advance and longest streak since 2017. The Dow and Nasdaq Composite also notched an eight-week winning streak.
Those moves come as investors cheer recent data showing inflation is moving closer toward the Federal Reserve’s 2% target. Expectations of potential rate cuts in the new year have also lifted equities in recent weeks.
In other news, Manchester United added 3.4% after British billionaire Jim Ratcliffe finalised a deal to buy a quarter of the soccer club.
Apple has appealed against a US import ban on its watches and has also requested a temporary halt on the ban until a mid-January ruling regarding potential patent infringement by redesigned watch versions.
Meanwhile, Intel is set to invest $25 billion in Israel, with $3.2 billion in government incentives, leading to a more than 4% increase in its New York shares. The investment will be used to expand Intel's wafer fabrication site in Kiryat Gat, in southern Tel Aviv, with the incentives covering approximately 12.8% of Intel's planned investment.
Overall, all sectors closed higher overnight. Energy, Real Estate and Industrials were the top performers, whilst Health and Communication Services recorded the fewest gains.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.