The S&P 500 soared to a closing high for 2023 on Friday, extending November’s rally into the new month.
The broad market index rose by 0.59%, ending the session at 4,594.63. The tech-heavy Nasdaq Composite advanced 0.55% to 14,305.03. The Dow Jones Industrial Average added 294.61 points, or 0.82%, to close at 36,245.50.
The Dow rose to another new high on Friday, bringing its 2023 gain to nearly 9.4%, after it notched a new 2023 high and capped off its best month in more than a year.
The S&P 500 closed at its highest level since March 2022. Stocks bringing the broad market index to these heights include Ulta Beauty and Boston Properties, which rose 10.8% and 11.2%, respectively. Paramount popped 9.8%.
Federal Reserve Chair Jerome Powell on Friday pushed back against the market’s expectations for interest rate cuts ahead, saying it is “premature to conclude with confidence” that monetary policy is “sufficiently restrictive.”
Yields fell as equities rallied during the day, even after Powell’s cautious remarks as traders interpreted them as a signal that the central bank is at least done with hikes. The yield on the 10-year Treasury note fell more than 13 basis points to 4.213%.
November’s big rally was due in part to traders beginning to believe the Fed was done raising rates and that the central bank may even start cutting them in the first half of next year. The Fed next decides on rates on Dec. 13.
Friday’s moves come on the heels of a blowout November rally. November’s gains snapped a three-month losing streak. The S&P and Nasdaq rallied 8.9% and 10.7%, respectively, to notch their best monthly performances since July 2022. The Dow surged 8.8% for its best month since October 2022.
This week, the S&P 500 added 0.77%, while the Dow rallied 2.4%. The Nasdaq advanced 0.38%. It marked the fifth consecutive week of gains for the major averages.
This month is typically a strong one for equities, with Decembers that precede a presidential election generally delivering outsized returns.
Futures
The SPI futures are pointing to a 0.9 per cent gain.
Currency
One Australian dollar at 7:35 AM was buying 66.65 US cents.
Commodities
Gold gained 1.58 per cent. Silver added 0.77 per cent. Copper gained 2.10 per cent. Oil fell 2.49 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 1.01 per cent, Frankfurt gained 1.12 per cent, and Paris closed 0.48 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei fell 0.17 per cent, Hong Kong’s Hang Seng lost 1.25 per cent while China’s Shanghai Composite closed 0.06 per cent higher.
The Australian share market closed 0.20 per cent lower at 7073.18
Ex-dividends
Collins Foods Ltd (ASX:CKF) is paying 12.5 cents fully franked
Incitec Pivot (ASX:IPL) is paying 5 cents unfranked
Stanmore Resources (ASX:SMR) is paying 8.7876 cents fully franked
Dividends payable
PharmX Technologies Ltd (ASX:PHX)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
