Stock Market Soars: S&P 500 Nears Record High

Last updated: December 26, 2023

The stock market kicked off the final trading week of the year on a high note, with the S&P 500 inching closer to its all-time high. 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.

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Despite weaker volume, the positive market business trends that have been boosting major indices in recent weeks are likely to continue, according to Keith Lerner, Truist’s co-chief investment officer. “You still have money dripping in even though it’s weakened, and a solid bid underneath the surface as we head into year end,” he said.

The S&P 500 ended 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.

Investors are cheering 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.

“Inflation’s coming down, the economy is still chugging along, and the hiking cycle’s over. On all of these macro trends, the rally has been justified,” said Jan Szilagyi, CEO and co-founder of Toggle AI.

In other news, Intel jumped 5.2% after Israel’s government gave the chipmaker a $3.2 billion grant for a $25 billion plant in the country’s south. Manchester United added 3.4% after British billionaire Jim Ratcliffe finalized a deal to buy a quarter of the soccer club.

The Russell 2000 climbed 0.5% to reach its highest level since April 2022, in a sign of broadening participation during the recent market rally. The index’s best performer is RayzeBio, which doubled on news it’s being acquired by Bristol Myers Squibb.

Oil prices climbed more than 2% on Tuesday as investors monitored conflict in the Middle East and the likelihood of forthcoming U.S. interest rate cuts. Brent crude futures rose $1.79, or 2.3%, to $80.86 a barrel. U.S. West Texas Intermediate crude added $1.89, or 2.6%, to $75.45.

As the year draws to a close, the stock market continues to show resilience, with investors remaining optimistic about the economic outlook.

Also Read: S&P 500 Hits 2023 High Amid Positive Market Trends

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