WGO - S&P 500 Nasdaq Set For Weaker Open As 'FOMO' Rally Cools: Analyst Says Only 'Black Swan Could Upset Santa's Sleigh' Now | Benzinga
The U.S. stock rally faces the risk of stalling, as index futures point to a lower opening on Wednesday. The Dow Industrials and the Nasdaq Composite have seen gains for nine consecutive sessions, with the latter reaching a record high. As the Santa Claus rally period begins on Friday, there is a possibility of some consolidation or a modest pullback. Negative earnings from FedEx Corp. (NYSE:FDX) could serve as a trigger.
Traders will closely monitor existing home sales and consumer confidence readings to confirm the soft-landing scenario they have begun anticipating. Bond yields remain contained, providing a reason for traders to maintain their investments in stocks.
Cues From Wednesday's Trading:
On Tuesday, stocks continued their upward climb, with the Dow Industrials achieving another record high, and the S&P 500 Index and the Nasdaq Composite both reaching fresh two-year highs. The market received support from a stronger-than-expected housing starts report, alleviating growth concerns.
The market exhibited broad-based strength, with only IT services stocks closing lower for the day. Energy and communication services stocks led the gains.
Small-cap stocks stood out with impressive gains, as the Russell 2,000 Index outperformed with a 1.94% surge. The index reached its highest level since mid-April 2022 and has gained 14.75% this year.
Louis Navellier, a fund manager, remarked, “The FOMO (Fear of Missing Out) is very high for people sitting with major assets in money markets earning less than 5% annually.”
US Index Performance On Tuesday