US: Stocks end banner year with modest loss in final session
WALL Street stocks finished a banner 2023 on a tepid note Friday (Dec 29), falling modestly to trim the year’s huge gains.
Major indices spent most of the final session of the year in the red, in a sharp reversal from the year’s trend, especially since late October.
The Dow Jones Industrial Average, which closed at records the last two days, ended down 0.1 per cent at 37,689.54.
The broad-based S&P 500 dipped 0.3 per cent to 4,769.83, while the tech-rich Nasdaq Composite Index fell 0.6 percent to 15,011.35.
“We started the year fearful because there were concrete signs of recession,” said Maris Ogg, of Tower Bridge Advisors. “You end the year with complete euphoria.”
Many of the gains accumulated since late October as market watchers cheered moderating inflation and a still-strong US labor market as indicating the US economy could avoid a recession.
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But looking ahead, Ogg said the market’s lofty valuation could pose challenges for further gains. Also, she said higher labor costs could make things tough for companies hoping to report strong earnings.
“We have a strong consumer, but I’m not so sure that earnings are going to meet expectations.”
For all of 2023, the Nasdaq led the major indices with a gain of 43 per cent.
The Dow climbed 14 per cent, while the S&P 500 won 24 per cent. AFP
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