Stocks finished marginally higher on Wednesday as investors kept a watchful eye on the S&P 500 as the index moved toward record territory.
The Dow Jones Industrial Average closed up 111 points, or 0.30%, while the S&P 500 gained 0.14% to close at 4,781.58, just short of its closing record high of 4,796.56, which was set in January 2022. The tech-heavy Nasdaq closed up 0.16%.
The market in the midst of a Santa Claus rally, a sustained increase in the stock market that occurs around the Christmas holiday on Dec. 25.
Most estimate these rallies happen in the week leading up to the Christmas holiday, while others see trends that begin Christmas Day through Jan. 2.
Looking ahead to the new year, Michael Landsberg, chief investment officer, Landsberg Bennett Private Wealth Management, said the stock market "is too optimistic about the quantity of rate cuts expected in 2024 and we may be borrowing some of 2024's gains now as the year-end rally continues because we don't expect to see as many rate cuts as the market is currently predicting."
"We expect to see three rate cuts in 2024 starting in July and not any sooner than that unless something unexpected happens in the economy that warrants lower interest rates," he said.
--Rob Lenihan
U.S. stocks nudged higher Wednesday, putting the S&P 500 within just a few points of its all-time high, as investors continue to extend the so-called Santa Claus Rally and double-down on the chances of spring interest-rate cuts from the Federal Reserve.
Updated at 10:00 AM EST
Another solid start
Stocks are off to another solid start, albeit amid very thin trading volumes and a lack of headline drivers, with the S&P 500 adding 4 points to last night's gains in the opening hour of trading.
The Dow was last marked 40 points higher while the Nasdaq gained 28 points.
Stock Market Today
The S&P 500 last night closed within 22 points of its record following a 20- point gain in typically thin post-holiday trading. This as the dollar held near five-month lows against its global peers and Treasury bond yields extended their historic autumn rally.
More of the same is expected Wednesday, following a solid overnight session in Asia powered in part by dovish minutes from the Bank of Japan's December policy meeting.
On Wall Street, investors are likely to eye a handful of minor economic releases, including the Richmond Fed's manufacturing index for December, while closely tracking Treasury yields and oil prices over the final trading days of the year.
Benchmark 10-year note yields were last seen trading at 4.87% in early New York dealing, while 2-year paper slipped to 4.289%.
Stock futures were muted, with contracts tied to the S&P 500 indicating a 1-point opening bell gain as the index looks to close out its strongest quarterly gain in three years.
Contacts linked to the Dow are suggesting a 17-point bump while the tech-focused Nasdaq, which is up 14% for the quarter, is set for a 12-point gain.
Europe's Stoxx 600 was marked 0.26% higher in the first full day of trading since last week, with all major markets around the region open. The MSCI ex-Japan index ended the session with a 1.17% gain.
Tokyo's Nikkei 225, meanwhile, was marked 1.13% higher as the summary of opinions from the BoJ meeting indicated no rush to change its ultra-loose monetary policy over the coming months.
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