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.
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
