Nasdaq, S&P 500 Futures Flat Ahead Of 2023's Final Session As Broader Market Eyes Record Close: Analyst Says 'Sellers Already Done'

The major index futures suggest a lackluster performance in the final session of the year. Volume is expected to remain anemic leading up to the long weekend due to the New Year holiday on Monday. The bond market will close early today. The only piece of economic news of any significance is the release of results from a regional manufacturing survey shortly after the market opens.

The S&P 500 Index is within 14 points of reaching a record close. If heavily weighted tech stocks manage to grind higher, the index could breach its all-time high of 4,796.56. Regardless of Friday’s outcome, the S&P 500 is on track to end with a robust gain of about 25%.

Cues From Thursday's Trading:

Stocks closed Thursday’s session on a mixed note as traders digested a report that showed an increase in weekly jobless claims. The major averages opened higher and stayed above the unchanged line for much of the session. Sentiment remained subdued throughout the day amid lighter-than-average trading volume.

The S&P 500 Index took a step towards its record high, extending its winning streak to five straight sessions, while the tech-heavy Nasdaq Composite snapped a four-session winning streak, settling marginally lower.

Utilities and real estate stocks were among the biggest gainers in the session, while energy stocks experienced the most significant pullback.

US Index Performance On Thursday

Analyst Color:

The rally seen since November has shown a material broadening of gains, and looking ahead AI will likely remain a major theme, fund manager Louis Navellier said, citing a “‘Delivering Alpha” survey. Laggards of 2023 will likely outperform in the new year, with energy poised to rebound strongly from 2023’s 3% drop, he said.

Navellier also hinted at consumer staples, utilities, and healthcare doing well in 2024.

”Investors appear satisfied to let the market slide sideways into year-end, with sellers already done,” the fund manager said, adding ”Don’t be surprised, however, if we symbolically manage to close the S&P at 4,800 when the dust settles tomorrow.”

Futures Today

Futures Performance On Friday

In premarket trading on Friday, the SPDR S&P 500 ETF Trust SPY rose 0.06% to $476.98 and the Invesco QQQ ETF QQQ gained 0.04% to $411.46, according to Benzinga Pro data.

Upcoming Economic Data:

The Chicago ISM is scheduled to release the results of its manufacturing survey for December at 9:45 a.m. ET. The headline business barometer index is expected to slip from 55.8 in November to 51 in December.

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Stocks In Focus:

• Tesla, Inc. TSLA rose over 0.80% in premarket trading as it rebounded from the previous session’s losses.
• Lyft, Inc. LYFT fell nearly 3%, and bigger peer Uber Technologies, Inc. UBER, one of the best-performing S&P 500 stocks, moved down over 1%.

Commodities, Bonds, Other Global Equity Markets:

Crude oil futures rose 0.32% to $72 in early European session on Friday following Thursday’s over 3% slump.

The benchmark 10-year Treasury note’s yield rose 0.027 percentage points to 3.877% on Friday, notably off the year’s high of 5.021% hit in late October.

The Asian markets closed out the year on a lackluster note, although the Chinese and Singaporean markets recorded strong gains. The South Korean market was closed in observance of the New Year. European markets traded higher in late-morning trading.

In the currency market, the U.S. dollar was mixed, with the greenback weaker against most European counterparts, while firming up against commodity currencies and the yen.

The cryptocurrency space is seeing weakness, with Bitcoin BTC/USD, the apex crypto bouncing below the $43,000 mark.

Read Next: Oil’s Rollercoaster 2023: Crude’s Volatile Year In Review And What Awaits In 2024

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