S&P 500 reaches a high record amid bets about a rate cut

S&P 500 reaches a high record amid bets about a rate cut: US stocks are close to reaching a record level in the first trading of the last week of 2023.
In a session marked by low trading volume, the S&P 500 traded about 0.5% less than its all-time high of 4,796.56.
Despite all expert’s warnings regarding the overbought levels and extended positions,
stocks continued to push forward on bets on lower interest rates at the beginning of next march



High indicators
Market attitude rises
Staying informed about the market state
Securing high Dividend returns
Performance of the market

High indicators


“The focus will soon shift to whether the market can maintain momentum into the new year,
which may depend on whether the good sentiment surrounding potential price cuts can be maintained,”
said Chris Larkin of Morgan Stanley E*Trade. 

The Standard & Poor’s 500 index rose to about 4774.75 points.
An index of chip makers’ stock prices reached a record high, with Intel’s stock price rising 5%.
The Russell 2000 small-cap index rose 1.2%.

Market attitude rises

The high demand for purchasing shares of this size is not rare or new,
but rather an upward sign of rising investor morale and a boost to the market.  According to Adam Turnquist of LPL Financial.

Adam also said that the waves of rise will not continue forever,
as history indicates that this situation is different. If the S&P 500 index rises for the ninth week in a row,
it will achieve the longest series of gains since the year 2004.


Staying informed about the market state 

Markets can still close at their highest level, so there is no reason why we cannot keep pace with the market until the end of the year.
said Louis Navellier, chief investment officer at Navellier & Associates.

Due to the holidays in Canada, New Zealand, Australia, and European markets, trading volume was small in the world.



As for the performance and news of companies, after the White House refused
to cancel the order banning Apple smartwatches in the United States, the company decided to appeal against this decision.
Intel decided to invest $25 billion in Israel after receiving incentives.
FedEx Corp. signed an agreement to return the Purchase of shares with Mizuho Markets Americas,
while Bristol-Myers Squibb announced its agreement to purchase RayzeBio for $4.1 billion.

The price of Bitcoin fell while the demand for meme currencies seemed to decrease,
while the price of oil rose in light of the ongoing unrest in the Red Sea.


Securing high Dividend returns

Buyers raced into Treasury bond sales on Tuesday, seeking returns above market expectations
for a series of interest rate cuts by the Federal Reserve in 2024. 

A group of foreign central banks, which made indirect offers, seized 77.6% of the 52-week bond auction,
which is a record percentage.
Meanwhile, the same group obtained the third largest share of the ministry’s 6-month offering,
amounting to 71.6%. At the same time, two-year debts were sold at a price lower than the return,
indicating a significant increase in demand that exceeded expectations.

Swaps associated with the Fed meeting suggest that there is more than a 90% chance
that the Fed will cut interest rates from the current 5.25% range to 5.5% in March.
By 2024, traders expect interest rate cuts of about 160 basis points,
more than double what Fed officials said earlier this month in a new round of quarterly forecasts.


Performance of the market 

The S&P 500 rose 0.4%
The Nasdaq 100 index rose 0.6%.
The Dow Jones Industrial Average rose 0.4%
Bloomberg Dollar Spot Index fell 0.2%
The price of Bitcoin fell 3.2% to $42,135.36
The price of gold in spot transactions rose 0.7% to $2,068.22 per ounce

S&P 500 reaches a high record amid bets about a rate cut