(Bloomberg) — The final week of 2023 is expected to be relatively quiet on Wall Street, after a ferocious rally that put the U.S. stock market within striking distance of its record high.
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Stocks rose amid lows following the S&P 500's longest weekly run since 2017. The Federal Reserve's dovish pivot this month fueled risk appetite in a surge that brought U.S. stock levels to less than 1% from their all-time highs. Withdrawal warnings.
The so-called Santa Claus rally usually covers the last five trading sessions of the year and the first two sessions of the new one. Overall, this trading period has a very strong record. Since 1969, the S&P 500 has averaged a seven-day gain of 1.3%, according to the Stock Trader's Almanac.
“The 'Santa Claus rally' indicator officially started last Friday,” said Craig Johnson, chief market technician at Piper Sandler. “We expect any pullbacks to be moderate and short-lived as investors follow an eight-week rally toward new highs.”
The economic calendar is thin this week, with home prices rising for the ninth consecutive month. Preliminary data from Mastercard SpendingPulse shows that U.S. holiday retail sales rose at a slower pace than in 2022 as select shoppers sought value and promotions throughout the season.
Treasuries were mixed ahead of a $57 billion sale of two-year notes at 1 p.m. New York time.
The U.S. bond market posted a fourth straight week of gains on growing investor confidence that the Fed will begin cutting interest rates next quarter.
In corporate news, FedEx Corp. Mizuho Markets entered into an accelerated share repurchase agreement with Americas. Apple Inc. in the United States. White House refuses to lift sales ban on U.S. smartwatches Intel Corp will invest a total of $25 billion in Israel. Bristol Myers Squibb Co. Agreed to acquire RayzeBio Inc. for approximately $4.1 billion.
Elsewhere, oil rose as tensions rose over shipping restrictions in the Red Sea following a series of Houthi attacks on ships in the vital waterway and after US military strikes in Iraq. Shipping stocks fell broadly after Maersk said it was preparing to resume shipping through the Red Sea.
Highlights of this week:
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China Industrial Profits, Wednesday
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The Bank of Japan publishes a summary of comments from its December monetary policy meeting on Wednesday
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Japan Industrial Production, Retail Sales, Thursday
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US Total Inventories, Initial Jobless Claims, Thursday
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UK nationwide house prices, Friday
Some key movements in the markets:
Shares
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The S&P 500 was up 0.3% as of 11:34 a.m. New York time
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The Nasdaq 100 rose 0.4%
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The Dow Jones industrial average rose 0.3%
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The MSCI world index rose 0.3%
Coins
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro rose 0.3% to $1.1036
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The British pound was up 0.2% at $1.2712
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The Japanese yen was little changed at 142.49 per dollar
Cryptocurrencies
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Bitcoin fell 2.8% to $42,317.01
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Ether fell 2.2% to $2,222.97
Bonds
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The yield on 10-year Treasuries was little changed at 3.90%.
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Germany's 10-year yield was little changed at 1.98%
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Britain's 10-year yield was little changed at 3.50%
goods
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West Texas Intermediate crude rose 3.1% to $75.86 a barrel.
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Spot gold rose 0.3% to $2,059.78 an ounce
This story was produced with the help of Bloomberg Automation.
–With assistance from Isha Day, Jessica Menton, Carter Johnson, Liz Gabo McCormick and Felice Marans.
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