Nasdaq Index, Dow Jones, S&P 500 News: Major Indexes Approach Record Highs in Year-End Rally

Highlights

• S&P 500 and Nasdaq see modest gains, Dow slightly dips.
• Dow, S&P 500, and Nasdaq poised for significant annual growth.
• Russell 2000 targets historic two-month gain.

S&P 500 and Other Indexes Nearing Record Highs

As the trading year draws to a close, S&P 500 futures remain steady, closely approaching a new all-time high. Nasdaq 100 futures are showing a slight increase of 0.24%, while Dow Jones Industrial Average futures have dipped by 49 points, or 0.13%. This follows a day of modest gains on Wall Street, with the S&P 500 and Nasdaq Composite rising 0.1% and nearly 0.2%, respectively, and the Dow finishing 0.3% higher.

Year-End Stock Performance

In the final stretch of 2023, both the Dow and the S&P 500 are set to conclude the year with impressive gains of over 13% and 24%. The S&P 500 is within a striking distance of its highest closing level set in January 2022. The Nasdaq, buoyed by the artificial intelligence surge and mega-cap tech rebounds, is tracking its best year since 2003, with an over 44% increase.

Russell 2000’s Remarkable Gains

The Russell 2000 is eyeing its third-largest two-month gain in history, potentially finishing November and December with a 24.3% increase. This remarkable growth, although subject to changes in the year’s final days, echoes significant historical rallies.

Federal Reserve’s Anticipated Rate Cuts

The market rally in 2023 is largely attributed to expected Federal Reserve rate cuts, which have influenced U.S. Treasury yields. Lower yields make stocks more appealing, fueling investor optimism. However, questions linger about the timing and sufficiency of these rate cuts in preventing a U.S. recession, despite expectations for an initial cut in March 2024.

Santa Claus Rally and Economic Data

Currently, markets are in the midst of the “Santa Claus rally,” a typically bullish period. Traders await forthcoming economic data on jobless claims and pending home sales, which could further shape market sentiments as the new year approaches.

Technical Analysis

Analyzing the E-mini Nasdaq-100 Index, the current daily price of 17152.00 exhibits a bullish trend, as it stands significantly above both the 200-day and 50-day moving averages, situated at 15202.83 and 15956.84 respectively. This positioning above key moving averages typically indicates strong upward momentum.

Additionally, the index is currently well above the main support level of 15717.75 and the minor support level of 16203.25. The lack of defined resistance levels in the provided data further suggests that the index has room for upward movement.

Given these technical indicators, the market sentiment for the E-mini Nasdaq-100 Index is bullish, implying potential for continued upward price movement.