Wall Street: Wall Street ends the year slightly down

by Stephen Culp

NEW YORK (Reuters) – The New York Stock Exchange ended slightly lower on Friday as investors expressed optimism about upcoming rate cuts from major central banks on the final trading day of the year.

The Dow Jones fell -0.05%, or 20.56 points, to 37,689.54.

The broader S&P-500 lost 13.52 points, or -0.28%, to 4,769.83.

The Nasdaq Composite fell 83.78 points (-0.56%) to 15,011.35.

The market has seen positive momentum in the final months of the year, with all three major Wall Street indices recording monthly, quarterly and annual gains.

All three indices showed double-digit growth for the year.

“If I had said last January that I thought the S&P would gain more than 20% in 2023, you would have thought I was a little crazy,” said Oliver Pursche, vice president of Wealthspire Advisors in New York.

“There are good reasons to be happy with this year and also reasons to be optimistic about 2024.”

But the three major US indexes lost ground on Friday as investors prepared to take advantage of the long weekend.

“There is really no reason for today’s slight decline,” explained Oliver Pursche. “No information explains it.

“I would say this is due to last minute portfolio changes, profit taking before the new year and maybe some rebalancing.”

The year 2023 was marked by the banking crisis that hit the United States in March, an artificial intelligence-related surge in stocks, concerns about oil supplies from the Middle East due to the war between Israel and Hamas, and fears that the US Federal Reserve’s (Fed) tightening policy would throw the American economy into recession.

Falling interest rates helped spark a year-end rally that accelerated in December when the Fed opened the door to a rate cut in 2024.

The technology, communications services and consumer goods sectors have been the best performers of the eleven S&P 500 sector indexes this year.

Those in utilities, energy and consumer goods lost ground.

In terms of values, Uber and Lyft fell on news that Nomura cut its recommendation on VTC platforms.

US markets will be closed on New Year’s Day on Monday, January 1.

(With contributions by Ankika Biswas and Amrut Khandekar; French version by Camille Raynaud)

Copyright © 2023 Thomson Reuters

Leave a Comment