by Augustin Turpin
(Reuters) – The New York Stock Exchange began its last session of a positive year on Friday without change and while the benchmark S&P 500 index is approaching its record level, driven by investors’ expectations of a drop in Fed interest rate at the start of 2024.
In early trading, the Dow Jones index gained 2.88 points, or 0.01%, to 37,712.98 points and the broader Standard & Poor’s 500 settled in balance at 4,783.38 points.
The Nasdaq Composite takes 0.02%, or 2.38 points, to 15,097.51.
The three main indices are expected to post monthly and quarterly gains, which would allow them to record double-digit gains in 2023.
Indeed, the Dow Jones reached a record level on Thursday, while the Nasdaq is on track to achieve its strongest annual increase since 2003, after experiencing a clear rebound last year.
Additionally, a close of the S&P 500 above its all-time high set in January 2022 would confirm that the index has entered a bull market, after hitting the bear market closing low in October 2022.
“Sentiment has changed dramatically over the past couple of months. The fact that the Fed is now expected to cut rates next year has added pressure to the market,” Paul said. Nolte, an analyst at financial services firm Murphy & Sylvest.
While optimism may continue in the short term, Paul Nolte points to the continued risk of a continued rise in inflation in 2024, which could force the Fed to keep interest rates at their high level.
In terms of values, Fisker shares rose 9.3% in early trading, the electric vehicle manufacturer having announced an increase in its deliveries of more than 300% from one quarter to the next.
(Writing by Augustin Turpin, edited by Kate Entringer)
Copyright © 2023 Thomson Reuters