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Stock and Indices are Set to End 2023 With a Bullish Bang

Miguel A. Rodriguez
Miguel A. Rodriguez
28 December 2023

Stocks, Indices, Euro and WTI Oil are all up, paving the road to end 2023 on a strong note. Continue reading to get the latest in the markets. 

Stocks are Closing 2023 with a Skyrocketing Bang

The stock market struggled to find solid ground yesterday after an extraordinary rally that brought the market close to record levels fueled by bets that the Federal Reserve will cut rates next year.

With just days left in 2023, when volume is trending down, some traders are citing an old Wall Street saying, “Never short a boring market.”. However, concerns have been raised about a reality check given overbought technical levels and questions about whether bets on interest rate cuts are excessive.

Indices Follow the Surge as the Dow, S&P, and the Nasdaq are All Up

All three major indices have had a solid year to date, as investors have gained confidence about how monetary policy will evolve in the year ahead, having largely managed to control inflation without causing a recession.

With just three sessions left in the year, the Dow Jones (USA30) and S&P 500 (USA500) are set to finish 2023 up 13% and 24%, respectively, while the Nasdaq is up an impressive 44%! 

  

Euro is Showing a Healthy Boost Against the USD

The Euro climbed to its highest level against the US Dollar since late July, driven by signals from the Federal Reserve suggesting potential rate cuts, which continued to bolster a risk rally.

In the forex market, EUR/USD rose more than 0.60% yesterday, surpassing the 1.11 level. The Euro has advanced 3.4% this year, with much of the rally occurring in recent weeks since the last comment of the Federal Reserve.

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Descripción generada automáticamente

EUR/USD daily chart, December 28, 2023. Source: CAPEX.com WebTrader.      

Global Shipment Returns to the Middle East – WTI Oil Had a Slight Uptick

Oil prices fell on Wednesday, following the previous session's sharp gain as shipping companies returned to the Red Sea despite tensions in the Middle East.

WTI Oil gained more than 2% on Tuesday as fresh attacks by Yemen's Iran-backed Houthi militia on ships in the Red Sea sparked further fears of shipping disruptions.

However, major shipping companies such as Maersk have resumed passage through the Red Sea following the deployment of a multinational task force in the region.

 

Key Takeaways

  • Stocks are surging in response to Fed interest rate cuts approaching in 2024.
  • The Euro is gaining ground. The EUR/USD rose .60% yesterday, surpassing the 1.11 level.
  • Dow Jones (USA30), S&P500 (USA500), and Nasdaq (Tech100) are all climbing, set to finish 2023 up 13%, 24%, and 44%!
  • WTI Oil gained slightly as global shipping disruptions subsided.

 

Sources: Bloomberg, Reuters 

 

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.