FX168 Financial News (North America) News #美股收评 #周一 (December 23), US stocks ushered in a one-week shortened opening session during the holiday season. Strong gains in technology stocks drove the market generally higher.

The S&P 500 rose 0.72% to close at 5974.07 points; the Nasdaq Composite Index rose 0.98% to close at 19764.88 points; and the Dow Jones Industrial Average rose slightly by 0.15% to close at 42906.95 points.

(Source: FX168)

(Source: FX168)

Economic data

Market sentiment in early trading on Monday was affected by weak economic data for a while.

The consumer confidence index fell to 104.7 in December, the lowest since September and lower than the forecast of 113.

Durable goods orders also fell 1.1% month-on-month, the biggest drop since June. The blue-chip Dow Jones index fell 300 points during the intraday period, but eventually rebounded at the close, showing the market's confidence in the recovery of technology stocks.

“Santa Claus bounces back”

Trading volume is expected to remain light this week. The New York Stock Exchange closed on Tuesday due to early Christmas Eve closure and Wednesday for Christmas Day.

Despite this, investors are still looking forward to the so-called “Santa Claus' rebound.”

According to historical data, the average increase of the S&P 500 index at the end of the year and the beginning of the new year was 1.3%. Analysts pointed out that the long-term upward trend in the market is still stable, and positive sentiment during the holiday season may drive the market to continue to rise.

Review and outlook

Recently, the market has experienced significant fluctuations.

Last week, the Federal Reserve hinted at a slowdown in interest rate cuts, causing the Dow Jones Index to plummet 1,100 points in a single day, one of the worst performers of the year.

The inflation data released over the weekend fell short of expectations, helping the market recover some of its lost ground. According to the data, the personal consumption expenditure index (PCE) shows a slight cooling in terms of inflation, but it still has not reached the Federal Reserve's target level of 2%.

Since December, the Dow Jones index has fallen 4.5% cumulatively, the S&P 500 index has fallen 1%, while the Nasdaq Composite Index, which has a higher share of technology stocks, has bucked the trend and risen 2.8%.

Investors are currently betting that the Federal Reserve will keep interest rates unchanged, while watching for potential economic and policy changes in 2025, including labor market prospects and economic policy adjustments after new President Donald Trump takes office.

Overall, despite market fluctuations and weak economic data, investors are hopeful that the market will pick up after the holidays. Economic reports over the next few days, including data on new home sales and unemployment benefits, will provide further guidance on market trends.

Trading performance after Christmas may be an important indicator for measuring market sentiment in 2024.

The bond market

The 10-year US Treasury yield rose to 4.59% from 4.53% last Friday, reflecting investors' continued concern about the uncertainty of the Federal Reserve's policies.

Although the Federal Reserve hinted last week that interest rate cuts next year may be less than expected, lower-than-expected inflation data helped relieve some of the pressure on the market.