In the penultimate trading session of the year, stocks inch higher on Thursday, displaying resilience as Wall Street approaches the end of 2023. The S&P 500 (^GSPC) maintained close proximity to its all-time closing high of 4,796.56 for a second consecutive day, recording a modest 0.4% increase. Simultaneously, the Dow Jones Industrial Average (^DJI) saw a 0.14% uptick, equivalent to approximately 50 points, while the Nasdaq Composite (^IXIC) experienced a marginal dip just below the flat line.
Despite Thursday’s minor fluctuations, the Nasdaq Composite has achieved an impressive gain of over 44% throughout the year. If this momentum persists through the final trading day of 2023 on Friday, it would mark the major average’s most substantial annual gain since 2003.
Anticipating a ninth consecutive week of gains, stocks entered Thursday’s session with optimism. If the S&P 500 manages to secure another positive week, it would signify the longest weekly winning streak for the benchmark average since 2004.
In terms of economic indicators, the latest data revealed a slight uptick in unemployment claims for the week ending December 23. Americans filed 218,000 jobless claims, a modest increase from the previous week’s 205,000 and surpassing the 210,000 projection by economists.
While economists closely monitor the labor market for signs of weakness that may hint at a broader economic slowdown in 2024, Thursday’s data did little to raise concerns. Jefferies US economist Thomas Simons commented, “Businesses have been extremely reticent to let go of workers that they struggled to find over the last 3 years. We doubt that they will be able to hold on to everyone indefinitely, but they’re going to try. … The chances of a soft landing in the labor market have increased, but a landing of some sort is coming for sure.”
Shifting focus to the housing market, the National Association of Realtors (NAR) reported that the index for pending home sales remained stagnant at 71.6 in November. This reading, the lowest since the index’s inception in 2001, fell below economists’ expectations of a 0.9% increase.
In addition to this, mortgage data released by Freddie Mac on Thursday revealed a decline in the rate on the 30-year fixed mortgage to 6.61%, down from 6.67% the previous week. Notably, this places mortgage rates at their lowest levels since May, potentially influencing the housing market as it heads into the new year.
As 2023 draws to a close, the upward trajectory of stocks closing higher on Thursday reflects a resilient and positive tone on Wall Street.
Source: Yahoo Finance
