US stocks largely unchanged in final week of strong year; Tesla in focus
Investing.com -- U.S. stocks traded largely unchanged Wednesday, with the recent rally pausing in the final trading week of the year.
By 09:35 ET (14:35 GMT), the Dow Jones Industrial Average contract was down 35 points, or 0.1%, S&P 500 traded 2 points higher, or 0.1%, and NASDAQ Composite climbed 30 points, or 0.2%.
The three main indices have had a strong year to date, as investors gained confidence that the Federal Reserve would start cutting interest rates next year, having largely succeeded in getting inflation under control without causing a recession.
With just three sessions left in 2023′s trading year, the DJIA and S&P 500 are poised to end 2023 higher by 13% and 24%, respectively, while the Nasdaq Composite has jumped an impressive 44%.
Quiet economic calendar
The economic calendar is largely empty Wednesday, with the Richmond manufacturing index the only data of note.
However, softer-than-expected PCE inflation data released on Friday saw traders ramp up bets that the central bank will begin cutting interest rates by as soon as March 2024.
The CME Group’s Fed Watch tool shows markets pricing in an over 70% chance the Fed will cut rates by 25 basis points in March.
Tesla to roll out new Model Y from Shanghai
In the corporate sector, Tesla (NASDAQ:TSLA) stock rose 1% after Bloomberg reported that the electric car manufacturer is preparing to launch a revamped version of its Model Y from its Shanghai plant.
That said, Reuters also reported that two U.S. senators have written to Elon Musk, Tesla’s top executive, calling on him to “swiftly” recall any steering and suspension parts that pose a safety risk.This follows an investigation by the news agency that exposed how the company has blamed drivers for frequent failures of components it has long known were defective.
Additionally, Israel's government has agreed to give Intel (NASDAQ:INTC), up 0.4%, a $3.2 billion grant for a new $25 billion chip plant it plans to build in southern Israel, in what would be the largest investment ever by a company in Israel.
Oil prices retreat ahead of API data
Oil prices edged lower Wednesday, after the previous session’s sharp gain as shipping giants return to the Red Sea despite the broader Middle East tensions.
By 09:35 ET, the U.S. crude futures traded 0.8% lower at $74.94 a barrel, while the Brent contract dropped 0.7% to $80.25 per barrel.
Both the benchmark contracts gained over 2% on Tuesday as further attacks by Yemen's Iran-backed Houthi militia on ships in the Red Sea prompted more fears of shipping disruptions.
However, major shipping firms such as Maersk and France's CMA CGM have resumed passage through the Red Sea following the deployment of a multinational task force to the region.
The first weekly estimate of U.S. crude stockpiles, from the industry body American Petroleum Institute, is due later in the session, a day later than usual following the Christmas holiday.
Additionally, gold futures rose 0.5% to $2,080.85/oz, while EUR/USD traded 0.3% higher at 1.1077.
(Oliver Gray contributed to this item.)
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US stocks largely unchanged in final week of strong year; Tesla in focus