(Bloomberg) — Wall Street is expected to be fairly quiet in the final weeks of 2023 after a ferocious rally that pushed the U.S. stock market to near record highs.
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This was the longest weekly S&P 500 index since 2017, and stock prices rose slightly despite low trading volume. The Federal Reserve’s dovish policy shift this month has boosted risk appetite, pushing U.S. stock indexes to within 1% of their record highs while pushing stocks higher. Warning about pullbacks.
The so-called Santa Claus rally typically includes the last five trading sessions of the year and the first two of the new trading sessions. Overall, this trading period has had a very positive record. Since 1969, the S&P 500 index has gained an average of 1.3% over a seven-day period, according to the Stock Traders Almanac.
“The ‘Santa Claus Rally’ indicator officially began last Friday,” said Craig Johnson, chief market technician at Piper Sandler. “We expect any pullback to be small and short-lived as investors chase an eight-week uptrend towards new highs,” he said.
The economic calendar is light this week, with home prices rising for the ninth straight month. The pace of growth in U.S. holiday retail sales slowed significantly compared to 2022 as selective shoppers sought value and promotions throughout the season, according to early data from Mastercard Spending Pulse.
U.S. Treasuries were mixed ahead of the $57 billion two-year bond sale at 1 p.m. New York time.
The U.S. bond market rose for the fourth straight week as investors became more confident that the Federal Reserve would start cutting interest rates next quarter.
In corporate news, FedEx Corporation has entered into an early stock repurchase agreement with Mizuho Markets Americas. The White House has refused to overturn a ban on the sale of Apple’s smartwatches in the United States. Intel will invest a total of $25 billion in Israel. Bristol-Myers Squibb has agreed to acquire RayzeBio for approximately $4.1 billion.
Elsewhere, oil prices rose as tensions remained high over a series of Houthi attacks on ships in the vital waterway and disruptions to shipping in the Red Sea following U.S. attacks in Iraq. Shipping stocks generally fell after Maersk announced it was preparing to restart shipping through the Red Sea.
This week’s main events:
China’s industrial profits Wednesday
The Bank of Japan on Wednesday released a summary of its opinions at its December monetary policy meeting.
Japan’s industrial production, retail sales, Thursday
U.S. wholesale inventories, new unemployment claims, Thursday
House prices across the UK, Friday
The main movements in the market are:
stock
As of 11:34 a.m. New York time, the S&P 500 was up 0.3%.
Nasdaq 100 rose 0.4%
The Dow Jones Industrial Average rose 0.3%.
MSCI World Index rose 0.3%
currency
The Bloomberg Dollar Spot Index fell 0.2%.
The euro rose 0.3% to $1.1036.
The British pound rose 0.2% to $1.2712.
The Japanese yen remained almost unchanged at 142.49 yen to the dollar.
cryptocurrency
Bitcoin fell 2.8% to $42,317.01.
Ether fell 2.2% to $2,222.97.
bond
The 10-year government bond yield was almost unchanged at 3.90%.
German 10-year bond yield remains unchanged at 1.98%
UK 10-year bond yield remains unchanged at 3.50%
merchandise
West Texas Intermediate crude rose 3.1% to $75.86 per barrel.
Spot gold rose 0.3% to $2,059.78 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Esha Dey, Jessica Menton, Carter Johnson, Liz Capo McCormick, and Felice Maranz.
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