[New York Stock Market] Mixed Close Amid Quiet Trading... S&P Nears Previous High

The three major indices of the U.S. New York stock market closed mixed on the 28th (local time) amid a quiet trading atmosphere at the end of the year. With no major market catalysts, the S&P 500 index continued its slight upward trend, getting even closer to an all-time high.

On this day at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average rose 0.14% (53.58 points) from the previous session to close at 37,710.10, setting a new record high following the previous day's peak. The large-cap-focused S&P 500 index recorded a 0.04% (1.77 points) increase to 4,783.35. Meanwhile, the tech-heavy Nasdaq index fell 0.03% (4.04 points) to close at 15,095.14.

Among the sectors in the S&P 500, eight out of eleven sectors rose, excluding energy, consumer discretionary, and materials. Energy stocks fell nearly 1.5% due to the decline in international oil prices.

By individual stocks, JD.com surged nearly 3% following reports related to wage increases. Apple showed slight gains after news that the U.S. Federal Court of Appeals decided to temporarily suspend the import ban on Apple Watch sales in the U.S. during ongoing patent infringement litigation. Microsoft also rose slightly as Wedbush raised its target price from $425 to $450 per share. On the other hand, cryptocurrency mining company Marathon Digital, which had been rallying recently on expectations of approval for a spot Bitcoin exchange-traded fund (ETF), plunged more than 9%.

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As the year-end approaches, trading volume on the New York stock market has dropped to about half of last week's level amid a lack of new catalysts. Investors are focusing on whether the Santa Rally will continue. The Santa Rally refers to the last five trading days of the year and the first two trading days of the new year. Since 1950, the S&P 500 has risen an average of 1.3% during this period, according to CNBC.

The S&P 500 index is approaching its all-time high of 4,796.56 recorded in January 2022. With one trading day left in the year, all three major New York stock indices are expected to continue their rally for the ninth consecutive week. This year, the Dow Jones and S&P 500 indices have risen more than 13% and 24%, respectively. The Nasdaq index, boosted by the artificial intelligence (AI) boom and tech stock rally, has soared more than 44% this year, marking the largest increase since 2003.

The market continues to anticipate interest rate cuts next year, which have supported the recent stock rally. 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.

However, some on Wall Street warn that the market's optimism based on rate cut expectations may be excessive. Scott Len, Chief Global Market Strategist at Wells Fargo, said the market consensus that the Fed will cut rates five to six times starting in March is too optimistic, and that the stock market could face difficulties early next year due to economic slowdown and interest rate uncertainties.

The weekly initial jobless claims released on this day exceeded Wall Street expectations. According to the Department of Labor, claims for the week of the 17th to 23rd rose by 12,000 to 218,000 compared to the previous week. Wall Street had expected 215,000 claims. Continuing claims, which represent those applying for unemployment benefits for at least two weeks, also increased by 14,000 to 1,875,000.

Preliminary home sales for November remained steady at 71.6, unchanged from the previous month. This is 5.2% lower than the previous year and below market expectations. The U.S. mortgage rate for a 30-year fixed loan fell by 0.06 percentage points to 6.61%, the lowest level in seven months since late May (6.57%). On the same day, the U.S. trade deficit for November was reported at $90.3 billion, up 0.8% from the previous month.

In the New York bond market, the benchmark 10-year U.S. Treasury yield stood at 3.84%, while the 2-year yield, sensitive to monetary policy, hovered around 4.27%. The Dollar Index, which measures the value of the U.S. dollar against six major currencies, rose about 0.2% to 101.2.

International oil prices fell more than 3% as logistics conditions in the Red Sea eased. On the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) crude for February delivery dropped $2.34 (3.16%) to close at $71.77 per barrel, marking the lowest level since the 15th of this month.