Nasdaq Index, Dow Jones, S&P 500 News: US Stocks Eye Record Highs in Final 2023 Surge

Highlights

• S&P 500 nears record peak in year-end rally.
• Major stocks surge on positive economic indicators.
• Inflation and housing data bolster bullish market outlook.

Stocks Rising in Year’s Final Stretch

U.S. stocks are witnessing a slight rise in the last week of 2023, indicating a desire among traders to conclude the year on a strong note. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are all recording gains, continuing a momentum seen in recent weeks.

Continuing Momentum from 2022

Wall Street is building on the momentum gained last week, with the S&P 500 marking its eighth consecutive weekly rise, the longest since 2017. This upswing comes as the S&P 500 approaches record highs, now less than 1% below its all-time peak.

Notable Stock Performances

Intel’s stock surged nearly 3% following a significant government grant for a new plant in Israel. Manchester United also saw a rise after a major acquisition deal. Meanwhile, MicroStrategy’s stock has soared this year, primarily driven by its substantial bitcoin investments, despite the cryptocurrency’s volatility.

Economic Indicators and Housing Market Trends

Recent inflation data indicates a trend towards the Federal Reserve’s 2% target, fueling speculation about potential rate cuts. The November PCE deflator report suggests a rapid decline in inflation, supporting the stock market. In the housing sector, the S&P CoreLogic Case-Shiller home price index shows a robust annual increase in home prices, despite fluctuating mortgage rates.

Short-Term Forecast: Optimistically Cautious

In the short term, the market is poised to continue its current rally. With inflation data aligning with Federal Reserve targets and solid housing market performance, investors are optimistic. This environment, coupled with the potential for rate cuts, sets the stage for a strong market performance as 2023 concludes.

Technical Analysis

The E-mini S&P 500 Index is currently exhibiting bullish sentiment. The index’s daily price of 4816.50 is significantly above both its 200-day and 50-day moving averages, which stand at 4459.42 and 4540.46 respectively. This placement above these key moving averages indicates a strong upward trend.

Additionally, the index is trading above the minor support level of 4562.50 and well above the main support at 4494.00, reinforcing the bullish outlook. The absence of specified resistance levels suggests that there are no immediate ceilings capping the index’s upward movement.

Overall, the E-mini S&P 500 Index’s current performance, positioned comfortably above both its moving averages and key support levels, points towards a predominantly bullish market sentiment.