by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended slightly lower on Friday, with investors optimistic about an upcoming rate cut from major central banks on the last trading day of the year.
The Dow Jones index fell -0.05%, or 20.56 points, to 37,689.54 points.
The broader S&P-500 lost 13.52 points, or -0.28%, to 4,769.83 points.
The Nasdaq Composite fell 83.78 points (-0.56%) to 15,011.35 points.
The market saw positive momentum in the final months of the year, which saw all three major Wall Street indexes record monthly, quarterly and annual gains.
All three indices posted double-digit growth for the year.
“If I had said last January that I thought the S&P was going to gain more than 20% in 2023, you would have considered me a little deranged,” said Oliver Pursche, vice president at Wealthspire Advisors in New York. .
“There are good reasons to be happy with this year, and there are also reasons to be optimistic about 2024.”
The three main American indexes, however, lost ground on Friday, as investors prepared to take advantage of a long weekend.
“There is really no reason for today’s slight drop,” explained Oliver Pursche. “No information explains it.”
“I would say it is due to last minute portfolio changes, profit taking before the new year and perhaps some rebalancing.”
The year 2023 was marked by the banking crisis which affected the United States in March, the jump in stocks linked to artificial intelligence, fears concerning the supply of oil from the Middle East due to the war between Israel and Hamas and fears that the restrictive policy of the American Federal Reserve (Fed) would tip the American economy into recession.
Falling interest rates helped spark a year-end rally, which accelerated in December when the Fed opened the door to interest rate cuts in 2024.
The technology, communications services, and consumer discretionary sectors recorded the best performances of the eleven sector indices of the S&P 500 this year.
Those in public services, energy and consumer goods have lost ground.
In terms of values, Uber and Lyft fell after reports that Nomura had lowered its recommendation on VTC platforms.
American markets will be closed Monday January 1 for the New Year.
(With the contribution of Ankika Biswas and Amruta Khandekar; Camille Raynaud)
Copyright © 2023 Thomson Reuters
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