"S&P 500 Inches to Record, Manufacturing Caution"

Summary of Yesterday's Session

Yesterday, the $S&P 500(.SPX)$ made another attempt at a record close, reaching 4793 points before settling at 4783, marking a 0.04% gain.

DJIA: +0.14% to 37,710.10 - S&P 500: +0.04% to 4783.35 - ​​​​​​​ Nasdaq: -0.03% to 15,095.14

Despite trading within 1% of the all-time high for the past two weeks, the index has shown resilience with a 34% rally since October 2022.

SP500

Key Events

In a week marked by holiday calm and reduced activity, trading volumes dipped to 2.7 billion shares on the NYSE, below the year-to-date average.

Attention turned to regional manufacturing indices, with the Richmond Fed index hitting -11 in December, indicating contraction, and similar negative trends observed in other regions.

Sector-wise, utilities and real estate outperformed, while energy and materials lagged. The Dow hit a record with $Nike(NKE)$ and 3M leading, while Chevron and Dow Inc faced declines. The $NASDAQ(.IXIC)$ edged down, and FAAMG stocks showed mixed movements. $Apple(AAPL)$ $Alphabet(GOOGL)$

$NVIDIA Corp(NVDA)$ stock has soared 239% this year and is the top performer in the S&P 500, on pace for its best annual performance since 2001, according to Dow Jones Market Data.

Market Scenario:

Approaching the year-end, the market remains close to its record, benefiting from changing interest rate expectations.

While the technology, communication services, and consumer discretionary sectors shone in 2023, negative signals emerged from regional manufacturing indices, indicating potential challenges for the US manufacturing sector.

$XLY

The market will closely watch the minutes from the recent Federal Reserve meeting and employment data, especially the December jobs report, as labor market performance will influence the trajectory of early 2024.

• The outlook is tinged with uncertainties, and the market's reaction to economic developments and interest rate changes will remain a key element to monitor…

$VIX

Thanks for reading, support. You’re welcome.

@TigerStars @CaptainTiger @TigerPM