Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, December 11, 2023.
Brendan McDermid | Reuters
U.S. stocks rose slightly on Tuesday to start the final week of the year, as traders tried to end 2023 on a high note.
THE S&P500 climbed 0.2%, and the Nasdaq Composite advanced 0.4%. THE Dow Jones Industrial Average earned 50 points.
Intel rose nearly 3% after the Israeli government gave the chipmaker a $3.2 billion subsidy for a $25 billion factory in the south of the country. Manchester United added 2% after British billionaire Jim Ratcliffe finalized a deal to buy a quarter of the football club.
US markets were closed on Monday due to the Christmas holidays.
Wall Street enters the shortened holiday week with momentum after the S&P 500 posted its eighth consecutive weekly advance last week, its longest streak since 2017. The Dow and Nasdaq Composite also notched an eight-week winning streak .
The S&P 500 also entered Tuesday’s session a short distance from record highs. The broad market index is less than 1% below its all-time closing high of 4,796.56 set in January 2022.
The moves come as investors applaud recent data showing inflation moving closer to the Federal Reserve’s 2% target. Expectations of possible rate cuts have also boosted stocks in recent weeks.
Tom Lee, head of research at Fundstrat, noted that the November PCE deflator report, released Friday, showed “inflation is falling like a rock.”
“The overall inflation story is consistent with our thesis and that supports stocks. After all, if the Fed starts to worry about deflation (which it doesn’t at the moment), then the Fed wants to reverse its position,” Lee said in a note last week.
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