US Stocks Soar: In a week buzzing with market catalysts, U.S. equities notched up modest gains, closing the year at new highs. Investors are on edge as they await critical inflation data and the Federal Reserve’s policy announcement, both wielding substantial influence over expectations on interest rates.
Speculation is rife that the Fed has concluded its interest rate hike cycle and may even entertain rate cuts in the early months of the upcoming year. This sentiment has been a driving force behind the recent rally, propelling major indexes to peak levels for the year. The market had been pricing in a better than 50 percent chance of a March rate cut by the Fed, but recent positive job growth and lower inflation expectations have injected a dose of uncertainty.
Ken Polcari, Managing Partner at Kace Capital Advisors, remains measured, advising against knee-jerk reactions ahead of key events. “It’s just in wait-and-see mode. The trend is just going to stay higher,” notes Polcari. He highlights the potential bullish impact of a softer CPI number, painting a “Goldilocks kind of landing story.”
The Dow Jones Industrial Average rose 157.06 points, or 0.43%, to 36,404.93, while the S&P 500 gained 18.07 points (0.39%) to 4,622.44. The Nasdaq Composite closed up 28.51 points (0.20%) at 14,432.49.
Also Read: US Stocks Hit 2022 Highs on Jobs Report, Diminishing Rate Cut Speculations
With expectations largely aligning on the Fed maintaining rates, questions linger about the timing of a potential rate cut. According to CME’s FedWatch Tool, there’s about a 43% chance of a March rate cut of at least 25 basis points, and nearly a 75% chance for a cut in May.
As the week unfolds, eyes are also on the European Central Bank (ECB) and the Bank of England (BOE), both set to make policy announcements. In stock movements, semiconductors soared 3.4%, the PHLX semiconductor index hitting its highest level since January 5, 2022. Broadcom led the charge with an 8.99% surge, courtesy of a “buy” rating from Citigroup.
Cigna experienced a notable jump of 16.68% after shelving talks to acquire Humana, coupled with a $10 billion share buyback plan. Nike also joined the positive momentum, gaining 2.33% following a Citigroup upgrade from “neutral” to “buy.” Macy’s witnessed a substantial uptick of 19.44% after an investor group proposed a $5.8 billion privatization offer. Market breadth showed a balanced ratio on both the NYSE and Nasdaq, with advancing issues slightly edging out decliners.
The S&P 500 boasted 54 new 52-week highs, with no new lows. Meanwhile, the Nasdaq reported 197 new highs and 143 new lows. Trading volume on U.S. exchanges hit 11.32 billion shares, slightly above the 10.89 billion average for the last 20 trading days. As the week progresses, investors remain on alert, navigating the nuances of economic indicators, central bank decisions, and corporate moves, seeking insights into the path of the financial markets.”
Our Reader’s Queries
Why are US stocks surging?
The stock market experienced a significant surge following the Federal Reserve’s recent policy update. The update included projections for an additional interest rate cut in 2024, which exceeded initial expectations. This news caused stocks to soar, indicating a positive outlook for investors.
Which US stocks are rising?
The Day Gainers list shows the top performing stocks for the day. Oscar Health, Inc. leads the pack with a 9.86% increase, followed closely by Super Micro Computer, Inc. with a 9.64% gain. SpringWorks Therapeutics, Inc. and Surgery Partners, Inc. also made impressive gains, both up 9.40%. These stocks are worth keeping an eye on as they continue to perform well in the market.
Which stock will boom in 2023?
Looking for the top multibagger stocks to invest in for 2023? Look no further than Aurionpro Solutions, Titagarh Railsystems, Jindal Saw, and Inox Wind. These companies have seen impressive YTD returns of 478%, 376%, 321%, and 278%, respectively. And that’s not all – there are six more promising options to choose from. Don’t miss out on the potential for significant gains with these top-performing stocks.
Are US stocks up or down?
The latest stock market figures are in, with the S&P 500 at 4,688.68, down 0.34%, the Dow Jones at 37,440.34, up 0.03%, and the Nasdaq at 14,510.30, down 0.56%. Meanwhile, the FTSE 100 is up 0.53% at 7,723.07. Keep an eye on these numbers as they can have a significant impact on the economy and your investments.