U.S. stocks are set to begin the new year with caution amid uncertainties surrounding upcoming economic reports and Federal Reserve speeches. Investors seek confirmation on anticipated rate cuts, with a focus on the Federal Reserve’s December meeting minutes and jobs data for guidance. Geopolitical tensions drive crude oil higher, while cryptocurrencies see upward movement.
Cues From Last Week’s Trading:
U.S. stocks closed 2023 on a positive note, completing a nine-week winning streak—the best since 2004.
The year saw significant gains, especially in mega-cap tech stocks, with the Nasdaq achieving its best annual performance since 2020 with a 43% surge. Investors reacted to eased inflation, creating expectations for potential Federal Reserve rate cuts.
US Index Performance In Week Ended Dec. 29, 2023
| Index | Week’s Performance | December Performance | CY2023 Performance | Value |
| Nasdaq Composite | +0.12% | +5.52% | +43.42% | 15,011.35 |
| S&P 500 Index | +0.32% | +4.42% | +24.23% | 4,769.83 |
| Dow Industrials | +0.82% | +4.84% | +13.70% | 37,689.54 |
| Russell 2000 | (-0.34%)- | +12.05% | +15.09% | 2,027.07 |
Analyst Color:
In light of the Nasdaq’s robust performance in 2023, Wedbush analyst Daniel Ives anticipates the emergence of ‘the Year of AI,’ foreseeing a potential 25% surge in tech stocks for 2024.
”We believe tech stocks will be up 25% in 2024 with a NASDAQ 20k level in our bull case scenario as the Street is still significantly underestimating how quickly this AI monetization cycle is playing out among enterprises in the field,” he added.
Meanwhile, FundStrat’s Tom Lee, renowned for his accurate 2023 S&P prediction, interprets Bitcoin‘s (CRYPTO: BTC) rally above the $45,000 mark as a favorable sign for high-risk asset classes at the outset of the new year.
Chart Courtesy of Benzinga Pro
Futures Today
Futures Performance On Tuesday
| Futures | Performance (+/-) |
| Nasdaq 100 | -0.90% |
| S&P 500 | -0.58% |
| Dow | -0.44% |
| R2K | -0.56% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.53% to $472.79 and the Invesco QQQ ETF (NASDAQ:QQQ) slumped 0.89% to $405.86, according to Benzinga Pro data.
Upcoming Economic Data:
As the new year kickstarts, investors are likely to focus on the week’s key economic…
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