On Monday morning, U.S. stock futures showed slight gains following the seventh consecutive week of positive performance for the three major averages. The Dow Jones Industrial Average achieved a new intraday record, and the Nasdaq 100 reached a new closing high.
Futures linked to the Dow industrials increased by 0.11%, adding 40 points. S&P 500 futures also advanced by 0.16%, and Nasdaq 100 futures rose by 0.06%.
The S&P 500’s seven-week winning streak represents its longest since 2017, with a monthly gain of 3.3%. The Dow and Nasdaq performed even better, rising by 3.8% and 4.1%, respectively.
Investor confidence received a boost last week after the Federal Reserve signaled expectations for three short-term interest rate cuts in 2024 amid easing inflation.
HSBC chief multi-asset strategist Max Kettner expressed optimism, stating that slowing inflation, low growth expectations, and sustained growth momentum create an ideal market backdrop. However, Kettner also highlighted weak near-term growth and earnings expectations in the U.S., cautioning that the current winning streak resembles the 2017-2018 rally that eventually led to disappointment.
Looking ahead, investors will focus on December’s business leaders survey and housing market index results. The week marks the beginning of the final full trading week of 2023. the seventh consecutive
In European markets, stocks opened slightly lower, with the pan-European Stoxx 600 down 0.3%. Construction and material stocks led losses with a 1.1% decline, while the health care sector nudged 0.3% higher. The continental blue-chip index closed out its fifth straight winning week on Friday, ending the day up 0.91% following major central bank decisions throughout the week.