SPY - S&P 500 Nasdaq Set For Wobbly Open As Santa Claus Rally Fades: Analyst Sees Final Trading Sessions As 'Last Great Buying Opportunity' | Benzinga
U.S. stocks may face challenges in maintaining their upward momentum on Wednesday, as index futures suggest a flat start. In the absence of significant catalysts, the market might experience a lack of direction, especially given the low trading volume typical of the holiday period, which could cast doubt on any substantial moves in either direction. However, optimistic expectations of economic momentum carrying into the new year, fueled by anticipated Fed rate cuts and a soft-landing scenario, coupled with the traditional year-end buying trend, may help prevent a large-scale sell-off.
Cues From Tuesday's Trading:
The market exhibited strong gains on Tuesday after the extended weekend, with small-cap stocks taking the lead. Despite a brief dip into negative territory for the Dow Industrials in early trading, it swiftly recovered and remained in positive territory for the rest of the session.
The Nasdaq Composite and the broader S&P 500 Index showed strength throughout the session, extending their winning streak for a third consecutive day. Both indices closed at fresh two-year highs, and the S&P 500 approached its all-time high of 4,818.62 (intraday) reached on Jan. 4, 2022.
The Nasdaq Composite’s intraday peak stands at 16,212.23, achieved on Nov. 22, 2021, while the Dow Industrials are trading below their all-time high of 37,641.30 reached last week.
The all-time closing highs for the three indices are 4,796.56 (Jan. 3, 2022), 16,057.44 (Nov. 19, 2021), and 37,557.92 (Dec. 19, 2023), respectively.
Tuesday saw broad-based buying interest in the market, with energy, real estate, and utility stocks leading the gains.
In recent sessions, small-cap stocks, represented by the Russell 2,000 index, have outperformed their larger counterparts, settling at their highest level since April 2022 on Tuesday.
Describing the week’s performance as the calm before the storm, fund manager Louis Navellier stated, “This week is the last great buying opportunity for many stocks.” ...