Dow futures edge higher at end of positive year
Investing.com — U.S. stock futures edged higher Friday, looking set to end a strong year on a positive note.
By 06:35 ET (11:35 GMT), the Dow Futures contract was up 38 points, or 0.1%, S&P 500 Futures traded 6 points, or 0.1%, higher and Nasdaq 100 Futures climbed 28 points, or 0.2%.
The three main indices have benefited from an impressive late rally, boosted by the Federal Reserve signaling that its prolonged rate-hiking cycle is at an end and rate cuts were likely in 2024.
The Dow Jones Industrial Average and S&P 500 are poised to end 2023 over 13% and 24% higher, respectively, with the latter less than 0.5% off its highest closing level, which was set in January 2022. The Nasdaq Composite is on course to record a gain of over 44%, which would be its biggest annual increase since 2003.
Investors are widely expecting the Fed to cut interest rates in the first quarter of 2024 as inflation has eased and economic growth has cooled. That said, the economy has shown little evidence that months of tighter monetary policy will result in a severe downturn, raising hope for the so-called ‘soft landing’.
Key to whether this mindset will continue will be the health of the U.S. jobs market into the new year.
Data released on Thursday showed that the number of Americans filing initial claims for unemployment benefits rose by 12,000 last week to 218,000.
Focus now turns to next week’s December nonfarm payrolls report, with the U.S. economy expected to have added 158,000 jobs in December versus 199,000 in November.
In the corporate sector, Nvidia (NASDAQ:NVDA) stock edged higher in premarket trading after the U.S. chipmaker launched a new version of a gaming chip designed to comply with U.S. export controls targeting China.
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