New York Stock Market Shows Mixed Trends Near Opening, Quiet Trading Ahead of Year-End

The three major indices of the U.S. New York stock market showed mixed movements near the flat line in early trading on the 27th (local time). As year-end quiet trading continues, the S&P 500 index, which is close to its previous high, is showing signs of consolidation.

At around 10:44 a.m. at the New York Stock Exchange (NYSE) on the day, the Dow Jones Industrial Average was trading at around 37,588 points, up 0.12% from the previous close. Meanwhile, the large-cap-focused S&P 500 index was down 0.05% at 4,772 points, and the tech-heavy Nasdaq index was down 0.12% at 15,055 points.

Currently, within the S&P 500 index, technology, communication, and utilities sectors are declining, while the other eight sectors are rising. Tesla rose nearly 2% from the previous close on foreign reports that it is preparing to upgrade the Model Y at its Shanghai factory. Bit Digital surged 13% on news that it plans to double its mining operations next year. NetEase showed a decline of over 5% amid promises from Chinese authorities to ease regulations on gaming companies.

[Image source=Getty Images Yonhap News]

Investors are watching whether the New York stock market can close the last trading week of 2023 on an upward trend, continuing from the previous day. The S&P 500 index has risen for eight consecutive weeks through last week, approaching the all-time high of 4,796.56 recorded in January 2022. Amid a lack of year-end catalysts, trading volume has dropped to about half of last week's level. No major economic indicators or corporate earnings expected to impact the market are scheduled for this week.

The expectation of interest rate cuts, which has supported the recent rally, continues. According to the Chicago Mercantile Exchange (CME) FedWatch, the probability that the Federal Reserve (Fed) will cut rates by at least 0.25 percentage points in March next year is 88% in the federal funds (FF) futures market.

In the New York bond market, the benchmark 10-year U.S. Treasury yield fell to around 3.83%. The 2-year yield, which is sensitive to monetary policy, dropped to about 4.26%. The dollar index, which measures the value of the dollar against six major currencies, is trading around 100.9, down about 0.5%. International oil prices are declining. The February West Texas Intermediate (WTI) crude oil price is trading around $75 per barrel, down more than 0.7% from the previous close.

European stock markets, which were closed the previous day, are also showing mixed movements near the flat line. Germany's DAX index rose 0.1%, the UK's FTSE index gained 0.3%, while France's CAC index fell 0.02%.