Traders work on the floor at the New York Stock Exchange on Dec. 13, 2023.
Brendan Mcdermid | Reuters
The S&P 500 rose slightly Wednesday following the latest in a series of encouraging economic data, as markets attempted to build on their momentum heading into year-end.
The broader index gained 0.1%. At current levels, the benchmark is 0.5% from its record close and 1% from its all-time intraday high hit in January 2022.
The Dow Jones Industrial Average added 67 points, or 0.2%, while the Nasdaq Composite was higher by 0.3%. Both indexes were on pace for a 10th straight day of gains.
Google-parent Alphabet was the best performer in the S&P 500, gaining more than 2% and reaching a new 52-week high. Other tech stocks such as Meta Platforms rose 0.6%, while Amazon added 0.6%, as bond yields declined.
FedEx was the biggest laggard in the broader index, losing more than 10%. The package delivery giant issued a disappointing revenue outlook for the fiscal year, and reported fiscal second-quarter results that fell short of expectations on the top and bottom lines. The Dow Jones Transportation Average slid 0.5%.
The December consumer confidence survey that came in stronger than expected helped buoy investor sentiment. The index, a measure of what Americans think of current and future economic conditions, rose to 110.7 in December, above the 104.5 expected by economists polled by Dow Jones.
Stocks rose broadly during regular trading Tuesday. The 30-stock Dow advanced 251.90 points, or 0.68%. The Nasdaq Composite jumped 0.66% to close above the 15,000 level for the first time since January 2022. Both indexes notched a ninth consecutive winning day, and the Dow closed at a fresh record high. Meanwhile, the S&P 500 gained 0.59%.
All three major averages are headed for a winning December and 2023 as stocks build on the recent rally and investors look forward to proposed rate cuts from the Federal Reserve in the new year.
The S&P 500 has risen more than 4% this month and more than 24% year to date, while the Dow has added more than 4% and 13%, respectively. The Nasdaq is up by more than 5% for December and 43% for 2023, putting it on pace for its best year since 2020.
“When the breadth is as positive as it’s been over the past couple of weeks, in our work it shows that the bull market has more legs, it’s more healthy, and it has the potential for more upside, because of how broad their participation is,” said Keith Buchanan, senior portfolio manager at Globalt Investments.
“I think this bull market has a lot of tailwinds right now,” Buchanan added.
