On Wednesday (10 January 2024), the US stock market experienced modest fluctuations throughout most of the day but witnessed a late-session surge, leading to gains in the three major indexes.
The tech-heavy Nasdaq Composite increased by 0.75%, closing at 14,969.65 points. The S&P 500 rose by 0.57%, nearly reaching a record high, and settled at 4,783.45 points. The Dow Jones Industrial Average advanced by 0.45%, concluding at 37,695.73 points.
Seven out of eleven S&P sectors ended positively, with Communication Services leading the gains, while Energy was among the losers.
Despite a strong rally at the end of 2023, the new year has seen a struggle to maintain momentum, largely due to a lack of major news or catalysts.
The best performance of the S&P 500 so far was on Monday, primarily driven by a surge in mega cap technology stocks.
However, the market is poised for potential volatility with the upcoming inflation report and the start of the earnings season.
Cryptocurrencies remained a focal point, especially after a false announcement about a Bitcoin ETF approval earlier this week by the compromised U.S. Securities and Exchange Commission’s account, which temporarily spiked Bitcoin’s value.
However, by Thursday, regulators officially authorised the launch of the first U.S.-listed ETFs designed to track Bitcoin, marking a pivotal development for the world’s largest cryptocurrency.
In the bond market, Treasury yields saw minimal changes, with a slight increase in the longer-end 30-year yield and the 10-year yield, while the 2-year yield remained relatively unchanged.
This movement was despite a $37 billion 10-year note auction that tailed slightly.
Intuitive Surgical, Inc (NASDAQ: ISRG) was a notable performer in the stock market, emerging as the top percentage gainer on the S&P 500 after releasing preliminary results that exceeded expectations.
As US stock futures point to a higher opening on Thursday, investors are preparing for the release of the latest inflation data and the commencement of the fourth-quarter earnings season.
These events have the potential to bring fresh momentum and direction to the U.S. stock market as it navigates uncertain economic conditions and evolving cryptocurrency dynamics.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
