Wall Street Update: S&P 500, Dow Jones, and Nasdaq Futures Near Flat as Market Closes in on Record High

2023-12-27 23:06:09

S&P 500 futures are near flat Wednesday night as the benchmark index closed in on a new all-time high.

Futures tied to the benchmark index and Nasdaq 100 were both little changed. Dow Jones Industrial Average futures slipped 6 points, also near flat.

The action follows a modestly winning day on Wall Street. The S&P 500 ended up 0.1%, rising closer to record levels. The Nasdaq Composite added nearly 0.2% in the session, while the 30-stock Dow finished 0.3% higher.

While the moves were muted, they come as investors look toward to end of what’s been a strong year for stocks.

With just two sessions left in the trading year, the blue-chip Dow and the S&P 500 are poised to finish higher by more than 13% and 24%, respectively. The latter is within 0.5% of its highest closing level, which was set in January 2022

Meanwhile, the technology-heavy Nasdaq is on track for its best year since 2003, climbing more than 44%. That outperformance has been driven by the artificial intelligence craze and a rebound among mega-cap tech names.

The three major indexes are also all on track to notch their ninth straight winning weeks. That underscores the market’s late 2023 rally, rebounding off a negative third quarter.

“2023 was … good for investors to really test their patience,” said Michael Mullin, chief market strategist at Claro Advisors. “There’s a lot that happens in the middle, but at the end of the day, you can look back and be satisfied that you were an investor.”

Stocks are now in the middle of a period dubbed the “Santa Claus rally,” which refers to the last five trading days of an ending year and first two of a new one. The S&P 500 has risen about 1.3% over this timeframe on average, per data going back to 1950 from the Stock Trader’s Almanac.

Traders will monitor economic data on jobless claims and pending home sales Thursday morning.

Russell 2000 poised to post third biggest 2-month gain ever

The Russell 2000 is on track to notch its third biggest gain ever over two trading months.

The small-cap index is on pace to finish November and December’s two-month period higher by 24.3%.

That would mark its third biggest two-month advance in its history, according to data analyzed by Bespoke Investment Group. Previously, the index gained 28.4% in November and December of 2020 and 25.3% in March and April of 2009.

A pullback in the final two trading days of December could push the two-month advance to the fourth spot. The index rallied 24.2% in October and November of 1982.

— Alex Harring

Stocks head for winning week, month, quarter and year

Friday marks the end of the trading week, month, quarter and year. By all measures, stocks are on track for gains.

With just two trading days left, here’s where they stand:

On the week: The Dow and Nasdaq Composite have each added 0.7%, while the S&P 500 has climbed 0.5%. All three are on pace for their ninth straight positive weeks.
On the month: The Dow and S&P 500 have gained more than 4%, and the Nasdaq has jumped more than 6%. It would be the second winning month in a row for all three.
On the quarter: The Dow and S&P 500 have advanced more than 12% and 11%, respectively. The Nasdaq has added more than 14%. All three posted losses in the prior quarter.
On the year: The Dow and S&P 500 rose more than 13% and 24%, respectively. The Nasdaq has soared more than 44%, on track for its best year since 2003. It marks rebounds across the board, as all three ended 2022 with losses.

— Alex Harring