The last week of the year saw stocks rise, driving the S&P 500 closer to record levels. The S&P 500 increased by 0.6%, while the Nasdaq Composite gained 0.7%. The Dow Jones Industrial Average also saw a rise of 200 points, equivalent to about 0.5%.
Despite lower trading volume, Tuesday’s market movements indicate a continuation of the positive trends that have been bolstering major indices in recent weeks, according to Keith Lerner, Truist’s co-chief investment officer. Lerner mentioned that money is still flowing into the market, albeit at a somewhat slower rate, and there is a strong underlying demand as we approach the end of the year. This trend is likely to persist.
Moreover, the S&P 500 was on the verge of reaching record levels during Tuesday’s session. The index was less than 1% away from its previous all-time high of 4,796.56, achieved in January 2022.
Wall Street entered the shortened week with momentum, following the S&P 500’s eight consecutive weeks of gains, marking the longest winning streak since 2017. Both the Dow and Nasdaq Composite also achieved eight-week winning streaks.
Investors have been pleased by recent data indicating that inflation is approaching the Federal Reserve’s 2% target. Additionally, expectations of potential rate cuts in the new year have contributed to the recent upward movement of equities.
Source (CNBC)
