The S&P 500 inched closer to an all-time high on Thursday, but didn't cross the goal line in mixed trading.
The index ended up 0.04% to 4,783.35, just short of its highest closing level ever, which was set in January 2022 at 4,796.56.
The Dow Jones Industrial Average closed up 53 points, or 0.14%, while the tech-heavy Nasdaq was off 0.03%, as investors wrapped up the second to last trading day of 2023.
Stocks are in the middle of the so-called “Santa Claus rally,” which refers to the last five trading days of an ending year and the first two of a new one.
In financial news, pending home sales in November were unchanged compared with October and 5.2% lower than November of last year, according to the National Association of Realtors.
The group said that the Northeast, Midwest and West posted monthly gains in transactions while the South recorded a loss. All four regions of the U.S. registered year-over-year declines in transactions.
"Although declining mortgage rates did not induce more homebuyers to submit formal contracts in November, it has sparked a surge in interest, as evidenced by a higher number of lockbox openings," said Lawrence Yun, NAR chief economist.
-- Rob Lenihan
U.S. equity futures nudged higher again Thursday, while Treasury yields and the dollar steadied at multi-month lows, as investors looked to close out the final full trading day of the year with stock market gains powered in part by bets the Federal Reserve will cut interest rates.
Updated at 10:34 AM EST
Record in sight
The S&P 500 was last marked 10 points higher, or 0.2%, in the opening hour of trading, putting the broadest measure of U.S. bluechip stocks to within 5 points of its all-time closing high.
The Dow, meanwhile, was last see 77 points into the green and on track for another record close while the Nasdaq gained 39 points, or 0.26%.
Stocks are looking at their fourth consecutive single-session gain, with the S&P 500 now within just 15 points of its January 2022 all-time high, following another end-of-year bond-market rally that pulled benchmark 10-year Treasury note yields to the lowest levels since July.
Adding to the bullish bond market tenor was a solid auction of $58 billion in new 5-year notes yesterday. It drew softer interest from foreign investors than a similar sale last month but was deemed a success given the holiday-thinned trading.
Traders will now likely focus on the release of weekly jobless claims data at 8:30 am Eastern time, the last major reading of the year, to justify the newly accelerated bets that the Federal Reserve will cut interest rates.
The Labor Department said new applications for unemployment benefits rose by 12,000 over the period ending on December 23 to 218,000, a bit higher than the Street consensus but still a level that suggests the labor market remains solid heading into the new year.
Investors are pricing in at least an 87% chance that the Fed begins cutting rates at its March meeting, according to data from CME Group's FedWatch tool. Follow-on reductions are expected at each of the next four meetings over the spring and summer.
On Wall Street, futures tied to the S&P 500 are indicating a 2-point opening-bell gain while those linked to the Dow suggest a 40-point fall from last night's all-time high of 37,565.52 points.
The tech-focused Nasdaq, meanwhile, is called 50 points higher.
In other markets, global oil prices moved lower in overnight dealing. Shipping companies, aided by a U.S.-lead military operation, are resuming cargo journeys through the Red Sea following a series of pre-Christmas attacks from Iran-backed rebels in Yemen.
Brent crude futures contracts for February delivery, the global benchmark, were last marked 91 cents lower on the session at $78.74 per barrel while WTI futures for the same month fell 80 cents to $732.32 per barrel.
In Europe, the Stoxx 600 was marked 0.1% lower in early Frankfurt trading while Britain's FTSE 100 slipped 0.13% in London.
Overnight in Asia, stocks were given a lift in China on reports that Central Huijin, an investment arm of the Chinese government, is looking to add to stakes in China-owned banks.
The regionwide MSCI ex-Japan index was marked 1.4% higher heading into the close of trading. Japan's Nikkei 225 closed 0.42% higher on its final trading day of the year to extend the benchmark's 2023 gain to 30.4%.
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