General News

S&P 500 is little changed, nears a record as it gets set to close out 2023 with 24% gain: Live updates – CNBC

A recession isn't expected next year, says Carson's Ryan Detrick

Stocks were little changed on Friday as Wall Street looked to end a winning year on a high note and possibly a new milestone.

The S&P 500 traded along the flatline, while the Dow Jones Industrial Average added 40 points. The Nasdaq Composite was also flat.

The S&P 500 entered the final trading day of 2023 less than 0.5% from a new record high, which could serve as an exclamation point on a rally that has gained strength in the final months of the year.

Stock Chart IconStock chart icon

hide content

The S&P 500 is on the cusp of a new record high.

The S&P 500 is up 24.6% in 2023, with Dow rising 13.8%. The Nasdaq Composite has led the way with a gain of 44.2% on the year — on pace for its biggest annual increase since 2003.

All the major averages are also on track to notch their ninth consecutive winning weeks, with the S&P up 0.7%. That would mark its longest stretch of weekly gains since 2004. The Dow and Nasdaq are up 1% and 0.7%, respectively, and on pace to clinch their longest weekly winning streaks since 2019.

The story for much of 2023 was the excitement around artificial intelligence fueling big gains for the “Magnificent 7” stocks like Nvidia and Microsoft, which bolstered the indexes even as the average stock struggled amid rising interest rates and fueled the outperformance of the tech-heavy Nasdaq.

Stock Chart IconStock chart icon

hide content

The Nasdaq Composite has surged more than 40% in 2023.

But with the Federal Reserve signaling it is likely done with rate hikes and could even cut rates multiple times next year, the 10-year Treasury yield dove from above 5% in late October to less than 3.9% on Thursday. Investors have also grown more confident in a possible “soft landing” where the U.S. economy avoids a recession.

As a result, the market rally has broadened out in the fourth quarter, with the industrial-heavy Dow already making a string of record highs this month. The small-cap Russell 2000 is up almost 14% in December, on track for its best month since November 2020.

Ryan Detrick, Carson Group chief market strategist, pointed out on Thursday’s “Closing Bell” that gains of 10% or more in final two months of a year is historically a signal that there is more room to run for stocks.

“A big end of year rally like this is not consistent with the end of a bull market. It usually means that upward momentum, that slingshot, is going to continue,” Detrick said.

Stocks open little changed to kick off final trading day of 2023

ARK Innovation ETF heads for third best year ever

Cathie Wood’s Ark Innovation ETF is up 73% in 2023 and on pace for its third best year on record since its 2014 inception.

Last year, the fund lost 67% as technology stocks slumped. The fund notched its best year ever in 2020, when it gained 149%.

Coinbase, Archer Aviation, Meta Platforms, DraftKings, Tesla, Shopify, Palantir, Roku and UiPath are among the biggest gainers in the fund. Shares of these companies have more than doubled since the start of the year.

Some underperfomers in the index down more than 10% this year include PagerDuty and Beam Therapeutics.

— Samantha Subin, Gina Francolla

Stocks posting the largest moves in premarket trading:

Check out the companies making headlines before the bell.

  • Fisker — Shares of the electric vehicle company popped 9.3% after Fisker said that it grew deliveries by over 300% between the third and fourth quarter, helped by strong demand for the company’s Ocean SUV. Fisker said it intends to announce a plan in January to continue accelerating sales and deliveries.
  • Lyft — The rideshare company fell 2.8% after Nomura cut its rating on the stock to reduce from neutral, saying Lyft’s growth could be limited due to its shrinking market share and low profitability compared to peers. The firm increased its price target from $11.70 to $13, but that still represents downside.
  • Nvidia — Nvidia shares ticked 0.3% higher after the chipmaker announced the launch of a slower gaming chip to be sold in China. The move comes as the company aims to comply with U.S. exports restrictions to China.

For the full list, read here.

— Pia Singh

S&P 500 heads for longest weekly winning streak since 2004

Stocks are headed for a winning year and the S&P 500 may be on the verge of hitting a new all-time high, but don’t let that overshadow another potentially momentous occasion for the broad-based index.

The S&P has gained 0.6% this week, putting it on pace for a ninth straight winning week. Should the index hold those modest gains, it would notch its longest stretch of weekly gains since the beginning of 2004.

The other indices are also headed for a ninth consecutive winning week, with the Dow Jones Industrial Average and Nasdaq Composite up 0.9% and 0.7%, respectively. This would mark the longest weekly winning streak for both major averages since 2019.

— Samantha Subin, Chris Hayes

Stock market is ‘arguably’ overbought, Yardeni says

Stocks have been on a tear recently, but they may be due for a pullback in the near future, according to Ed Yardeni of Yardeni Research.

“Arguably, the bull market is overbought, and there are too many bulls,” Yardeni wrote. “However, meltups can go on for a while until, like Icarus, they get too close to the sun. In other words, they can lead to meltdowns if they rise too far too fast.”

— Fred Imbert

China’s Xiaomi unveils its first EV as it looks to compete with Porsche, Tesla

Chinese consumer electronics company Xiaomi revealed Thurs., Dec. 28, 2023, its long-awaited electric car, but declined to share its price or specific release date.

CNBC | Evelyn Cheng

China’s consumer electronics company Xiaomi on Thursday detailed plans to enter the country’s oversaturated electric-vehicle market and compete with automaker giants Tesla and Porsche with a car model it says it spent more than 10 billion yuan ($1.4 billion) to develop.

The model, known as Xiaomi SU7, “is in trial production and it will hit the domestic market in a few months,” CEO Lei Jun said in a Tuesday post on the X social media platform, formerly known as Twitter. “The price has not been finalized yet.”

Pronounced “Sue Qi” in Mandarin, the Xiaomi SU7 beats Porsche’s Taycan and Tesla’s Model S on acceleration and other metrics, Lei said during a three-hour presentation Thursday.

Read the full story here.

— Evelyn Cheng

A new high for S&P 500 could signal winning year ahead, history says

Fresh record highs for the S&P 500 have historically been quite a good omen, according to Carson Group chief market strategist Ryan Detrick.

The strategist said that since 1950, when the S&P 500 hits a record high for the first time in over a year, the next 12 months have seen positive returns 13 out of 14 times. The S&P 500 is within 14 points of its record close of 4,796.56, set on Jan. 3, 2022.

“To put a bow on this, new highs are bullish when you go awhile without one. It still could be a pretty good market next year for investors,” Detrick said on “Closing Bell.”

— Jesse Pound

Market stats: Nasdaq on track for best year since 2003, small caps surge in December

Here’s where the major indexes stand with one trading day left in 2023.

The S&P 500 is:

  • up 24.58% year to date, on pace for its fourth positive year in 5.
  • up 11.55% in the fourth quarter
  • up 4.72% in December

The Nasdaq Composite is:

  • up 44.22% year to date, on pace for its best yearly performance since 2003 when it gained 50.01%. 
  • up 14.19% in the fourth quarter
  • up 6.11% in December

The Dow Jones Industrial Average is:

  • up 13.77% year to date
  • up 12.54% in the fourth quarter, on pace for its fourth positive quarter in five.
  • up 4.89% in December

The Russell 2000 is:

  • up 16.87% year to date
  • up 15.31% in the fourth quarter
  • up 13.78% in December, on pace for its best monthly performance since November 2020.

— Jesse Pound, Christopher Hayes

Futures open trading little changed

Stock futures opened flat on Thursday evening, with futures for the S&P 500, Dow and Nasdaq 100 all moving less than 0.1%.

— Jesse Pound