U.S. stock futures are on the rise, with the Dow Jones Industrial Average poised to build upon its gains for the week and reach new record highs. Dow futures climbed by 65 points, equivalent to a 0.1% increase. S&P 500 futures inched up by 0.1%, while Nasdaq 100 futures experienced a 0.2% rise.
It is anticipated that stocks could experience volatile trading due to the quarterly rebalancing of the S&P 500 and Nasdaq-100. Notably, Uber will become a constituent of the S&P 500, while DoorDash and MongoDB will be added to the Nasdaq-100. A potential concern during this rebalancing is the possibility of certain stocks acquiring outsized weightings within the indexes.
This week marks the seventh consecutive week of gains for the major averages. As of Thursday, the Dow has registered a 2.8% increase for the week, while the S&P 500 and Nasdaq Composite have risen by 2.5%. This week’s performance also signifies the seventh straight week of gains for the S&P 500, its longest winning streak since 2017. Additionally, the Dow is on track to achieve its longest winning streak since 2019, spanning nine weeks.
The S&P 500 is approaching its own all-time high and is less than 1.6% away from its record closing level established in January 2022. The Nasdaq, on the other hand, currently stands approximately 8% below its highest-ever closing level and about 9% away from its all-time intraday peak.
This past week has seen a stock market rally after the Federal Reserve acknowledged that its efforts to control inflation are proving effective. The central bank also signaled three anticipated interest rate hikes in 2024, which boosted investor confidence. Furthermore, Thursday’s release of stronger-than-expected retail sales data for November, combined with this week’s milder inflation readings, has contributed to optimism that the Federal Reserve can achieve a smooth economic transition.
Source (CNBC)
