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Wall Street closed higher on Tuesday as market participants gauged key inflation data and expected the Federal Reserve to keep interest rates unchanged for the third consecutive time. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.5% or 173.01 points to close at 36,577.94, marking its highest close since Jan 4, 2022. Notably, 21 components of the 30-stock index ended in positive territory, while nine ended in negative zone. The major gainer of the blue-chip index was Salesforce, Inc. (CRM - Free Report) after jumping 1.7%. CRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 14,533.40, rising 0.7% due to strong performance of large-cap technology stocks. The tech-laden index posted its highest close since Mar 29, 2022.
The S&P 500 gained 0.5% to finish at 4,643.70, reflecting its highest close since Jan 14, 2022. Out of 11 broad sectors of the benchmark, eight ended in positive territory, while three finished in red. The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 0.7%, 07% and 0.6%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%.
The fear-gauge CBOE Volatility Index (VIX) was down 4.4% to 12.1. A total of 10.52 billion shares were traded on Tuesday, lower than the last 20-session average of 10.95 billion. The S&P 500 posted 74 new 52-week highs and two new lows; the Nasdaq Composite recorded 198 new highs and 187 new lows.
Investors Gauge Inflation Data
All three major indexes touched new intraday 52-week highs on Tuesday. Investors were eagerly awaiting the November Consumer Price Index (CPI) reading, which came out on Tuesday morning. Inflation saw a modest increase in November, aligning closely with economists’ expectations. According to the report from the Labor Department, the Consumer Price Index (CPI), a gauge of inflation, rose by 0.1% in November and showed a 3.1% increase compared to the same period last year.
The Core CPI, which excludes food and energy prices, saw an increase of 0.3% and a year-over-year increase of 4%. These numbers aligned with estimates and showed minimal deviation from October’s data. The release of these indicators coincides with the two-day policy meeting of the Federal Reserve, where it is widely expected that interest rates will remain unchanged for the third consecutive time. Investors are now awaiting Wednesday morning's release of the producer price index report.
Decline in Oil Prices
Oil prices declined more than 3% on Tuesday, reaching the lowest point in six months. This decline was driven by concerns surrounding oversupply and increased consumer price data. Brent crude settled at $73.24, marking a decrease of 3.7%, while U.S. West Texas Intermediate crude slipped by 3.8% to $68.61 per barrel. The unexpected rise in the U.S. Consumer Price Index suggests that the Federal Reserve may delay interest rate cuts, impacting future demand for oil. Additionally, there are expectations of a slowdown in oil demand growth in 2024, further contributing to market sentiment.
Investors are eagerly awaiting updates from both the Federal Reserve meeting and OPEC+ this week. Market sentiment has also been influenced by Yemen’s Houthi attack on a tanker and concerns raised at the COP28 climate summit.
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Stock Market News for Dec 13, 2023
Market News
Wall Street closed higher on Tuesday as market participants gauged key inflation data and expected the Federal Reserve to keep interest rates unchanged for the third consecutive time. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.5% or 173.01 points to close at 36,577.94, marking its highest close since Jan 4, 2022. Notably, 21 components of the 30-stock index ended in positive territory, while nine ended in negative zone. The major gainer of the blue-chip index was Salesforce, Inc. (CRM - Free Report) after jumping 1.7%. CRM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 14,533.40, rising 0.7% due to strong performance of large-cap technology stocks. The tech-laden index posted its highest close since Mar 29, 2022.
The S&P 500 gained 0.5% to finish at 4,643.70, reflecting its highest close since Jan 14, 2022. Out of 11 broad sectors of the benchmark, eight ended in positive territory, while three finished in red. The
Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 0.7%, 07% and 0.6%, respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%.
The fear-gauge CBOE Volatility Index (VIX) was down 4.4% to 12.1. A total of 10.52 billion shares were traded on Tuesday, lower than the last 20-session average of 10.95 billion. The S&P 500 posted 74 new 52-week highs and two new lows; the Nasdaq Composite recorded 198 new highs and 187 new lows.
Investors Gauge Inflation Data
All three major indexes touched new intraday 52-week highs on Tuesday. Investors were eagerly awaiting the November Consumer Price Index (CPI) reading, which came out on Tuesday morning.
Inflation saw a modest increase in November, aligning closely with economists’ expectations. According to the report from the Labor Department, the Consumer Price Index (CPI), a gauge of inflation, rose by 0.1% in November and showed a 3.1% increase compared to the same period last year.
The Core CPI, which excludes food and energy prices, saw an increase of 0.3% and a year-over-year increase of 4%. These numbers aligned with estimates and showed minimal deviation from October’s data. The release of these indicators coincides with the two-day policy meeting of the Federal Reserve, where it is widely expected that interest rates will remain unchanged for the third consecutive time. Investors are now awaiting Wednesday morning's release of the producer price index report.
Decline in Oil Prices
Oil prices declined more than 3% on Tuesday, reaching the lowest point in six months. This decline was driven by concerns surrounding oversupply and increased consumer price data. Brent crude settled at $73.24, marking a decrease of 3.7%, while U.S. West Texas Intermediate crude slipped by 3.8% to $68.61 per barrel. The unexpected rise in the U.S. Consumer Price Index suggests that the Federal Reserve may delay interest rate cuts, impacting future demand for oil. Additionally, there are expectations of a slowdown in oil demand growth in 2024, further contributing to market sentiment.
Investors are eagerly awaiting updates from both the Federal Reserve meeting and OPEC+ this week. Market sentiment has also been influenced by Yemen’s Houthi attack on a tanker and concerns raised at the COP28 climate summit.