The S&P 500 index futures have remained relatively stable this Wednesday. The index appears to be approaching an all-time high, attracting the interest of many investors. Similarly, Nasdaq 100 futures showed little movement, while the Dow Jones experienced a minor decline of 0.08% in index futures.
The previous day witnessed a strong performance in the stock market. The market was closed on Monday for the Christmas holidays, and the opening on the following day had a significant boost. Both the Dow Jones and S&P 500 index numbers rose by 0.4% each. Overall, the S&P 500 was only 0.5% away from its highest-ever value, last seen in January 2022.
At the same time, the Nasdaq Composite saw a 0.5% increase, with the Nasdaq 100 also rising by 0.5%, reaching an all-time high.
These developments indicate that the stock markets have been in a strong position in 2023. The Dow Jones is set to gain 13%, and the S&P 500 is expected to increase by 24% over the course of 2023, encouraging index trading. Although there are still three more trading sessions left, the possibility of a different outcome seems unlikely.
The most impressive performer by far was the Nasdaq Composite, with its index numbers increasing by 44%. The overall recovery of the tech sector in recent months, along with increased investment in AI technology, contributed to the Nasdaq’s success.
While it initially appeared that we might avoid it, it seems we are in the midst of a “Santa Claus rally.” This is a common occurrence in the last week of every year, driven by a combination of factors. On average, the S&P 500 sees a 1.3% boost during this time of year. Therefore, such a development is not entirely surprising, and we may see a pullback in the next few weeks.
