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Stock Market News for Dec 26, 2023

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Market News

Wall Street closed mixed on Friday as market participants gauged key inflation data and expected the Federal Reserve to cut interest rates in 2024. The Dow ended in negative territory, while both the S&P 500 and the Nasdaq Composite finished in the positive zone.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) declined 0.1% or 18.38 points to close at 37,385.9. Notably, 22 components of the 30-stock index ended in positive territory, while eight ended in negative zone.

The tech-heavy Nasdaq Composite finished at 14,992.97, rising 0.2% due to the strong performance of the large-cap technology stocks. The major gainer of the Nasdaq Composite was ANSYS, Inc. (ANSS - Free Report) after jumping 18.1%. ANSYS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 gained 0.2% to finish at 4,754.63. Out of 11 broad sectors of the benchmark, 10 ended in positive territory, while one finished in red. The Consumer Staples Select Sector SPDR (XLP), the Materials Select Sector SPDR (XLB) and the Health Care Select Sector SPDR (XLV) rose 0.8%, 06% and 0.5%, respectively, while the Consumer Discretionary Select Sector SPDR (XLY) declined 0.7%.

The fear-gauge CBOE Volatility Index (VIX) was down 4.5% to 13.03. A total of 9.63 billion shares were traded on Friday, lower than the last 20-session average of 12.52 billion. The S&P 500 posted 39 new 52-week highs and no new lows; the Nasdaq Composite recorded 176 new highs and 64 new lows.

Investors Gauge Inflation Data

The core personal consumption expenditures (PCE) price index, which is a key measure of inflation used by the Federal Reserve, showed a slight increase of 0.1% in November, taking the year-over-year rise to 3.2%, just below the expected 3.3%. On a six-month basis, core PCE increased 1.9%, suggesting that the Fed is approaching its inflation target.

Regarding PCE, which includes food and energy costs there was a decrease of 0.1% from the month but showed a year-on-year increase of 2.6%. This report indicates that inflation is making progress toward reaching the Fed’s desired target of 2%. As a result, investors speculate that there might be potential for interest rate cuts in 2024. The Federal Open Market Committee has already indicated its intention to halt any rate hike and expects to implement cuts next year.

Weekly Roundup

During last week, the S&P 500 experienced a 0.8% gain, the Nasdaq surged by 1.2%, and the Dow recorded a modest uptick of 0.2%. Overall, it has been a positive week for these major indices, reflecting optimism in the financial markets.

Economic Data

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales for November decreased to 590,000 units sold. The number for October was revised down to 672,000 from the previously reported 679,000.

The U.S. Census Bureau reported that durable goods orders for November had increased by 5.4%. For October, the number was revised down from the previously reported 5.4% to 5.1%.

 


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