Mixed Outlook for U.S. Stocks as 2023 Nears Its End; Market Hopes for Rate Cuts
2023 Stock Market Update: Mixed Trends as Year Ends - Hope for Lower Rates and Tech Impact, But Economy Concerns Linger. China Stocks Surge Pre-market.
Today, the U.S. stock market is a bit up and down as we approach the end of 2023. The S&P 500, a big stock indicator, is hanging around its highest point ever. People are hopeful because they think there might be lower interest rates early next year.
Before the market officially opens, some really big companies' stocks are doing well, especially in tech (Nasdaq). But the stocks linked to the S&P 500 are not moving much.
Yesterday, the stock market had a mixed day. It went a little up and a little down, but by the end of the day, it was higher overall. This year has been pretty good for the stock market. It's on track to finish the month, the quarter, and the whole year with gains.
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People are watching the S&P 500 closely now. If it closes higher than it did in January at 4796.56, it means the market is doing really well after having a tough time in October 2022.
Later today, there's a report coming out about the number of people filing for unemployment. It's the last big thing that could sway the market before the year ends.
People are feeling positive about the economy next year. They hope there will be lower interest rates, and things will be stable. There's also excitement about new technology making a big impact on the stock market this year.
But, not everyone is super confident. Some worry that the economy might slow down because borrowing money is getting more expensive.
An expert, Susannah Streeter, says, "People are hoping for the best next year, with prices not going up too much, and the economy staying good. But, there's still a chance things could go bad again."
A tool that looks at what people are betting on shows there's an 86% chance that in March, the people who decide on interest rates will lower them a bit.
Right now, before the market opens, Dow (a stock index) is a little lower by 49 points (0.13%), S&P 500 is a tiny bit higher by 0.02%, and Nasdaq 100 is up by 0.22%.
Before the market opens, companies from China listed in the U.S. are doing well. Alibaba, PDD, and JD.Com stocks are up between 1.4% and 3.7%.
Also Read: Year-End Twist: Dollar Hits 5-Month Low Against Euro Amid Fed Rate Cut Expectations
