As 2023 nears conclusion on Wall Street, stocks nudged higher on Thursday, maintaining the S&P 500 close to its all-time high of 4,796.56 for the second consecutive day. The benchmark average experienced a modest uptick of 0.4% during Thursday’s trading session. Simultaneously, the Dow Jones Industrial Average rose by 0.14%, equivalent to approximately 50 points, while the Nasdaq Composite, focused on technology, dipped just below the neutral line.
Despite the slight dip, the Nasdaq showcased an impressive year-long gain of over 44%. If this momentum persists through the final trading day of the year on Friday, it would mark the Nasdaq’s best annual performance since 2003.
Stocks commenced Thursday’s trading session with the ambition of securing a ninth consecutive week of gains. Should the S&P 500 achieve another positive week, it would represent the longest weekly winning streak for the benchmark average since 2004.
Recent economic indicators revealed a marginal increase in unemployment claims for the week ending on December 23. Americans filed 218,000 jobless claims, up from the previous week’s 205,000, surpassing the projected 210,000 anticipated by economists.
Economists, monitoring the labor market closely for any potential signs of weakness that might foretell a broader economic slowdown in 2024, found little cause for concern in Thursday’s data. Jefferies US economist Thomas Simons noted in a client update that businesses have been hesitant to release workers they struggled to find over the past three years. He expressed doubt about the ability to retain everyone indefinitely but acknowledged an increased likelihood of a soft landing in the labor market, with some landing eventually inevitable.
In additional economic news, the National Association of Realtors (NAR) reported that the index for pending home sales remained at 71.6 in November, representing the lowest reading since the index’s establishment in 2001. This figure fell short of economists’ expectations for a 0.9% increase.
Housing data also revealed a decline in the rate for 30-year fixed mortgages, dropping to 6.61% from the previous week’s 6.67%, according to data released by Freddie Mac on Thursday. This marks the lowest mortgage rates have been since May, providing a potential boost to the real estate market.
As the curtains fall on 2023, stocks closed higher on Thursday, painting a positive and resilient picture for Wall Street investors.
Source: Yahoo Finance
