Year-end comeback lifts S&P 500 to brink of record highs on Tuesday

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Note: Figures recorded at 7:30am AEDT. The closing figures and video recording will be available at 9:00am AEDT. 

The S&P 500 rose Tuesday, approaching its record high, as the Federal Reserve’s recent dovish shift on rates lifted stocks.

The Dow Jones Industrial Average rose 186 points, or 0.5%. The S&P 500 gained 0.4%, and the Nasdaq Composite advanced 0.5%.

With Tuesday’s gain, the S&P 500 is about 0.7% from surpassing its record close and 1.2% from equaling its intraday record, both set in January of 2022.

Walgreens Boots Alliance was the best performer in the Dow, with shares up by more than 3%. Meanwhile, solar stocks Enphase Energy and First Solar were the greatest advancers in the S&P 500, up by more than 6% and 5%, respectively.

Energy stocks outperformed, with the S&P 500 sector up by more than 1% as oil prices rose. Occidental Petroleum shares gained more than 2%, while Halliburton and Exxon Mobil shares were each higher by more than 1%.

Equities have hit rally mode as of late, with last week’s indication of three likely interest rate cuts from the Federal Reserve in 2024 providing a catalyst for the market. Signs of cooling inflation and a pullback in Treasury yields have also helped risk assets during what’s already a typically strong season for equities.

All three major averages on pace to finish December with gains. The S&P 500 is up more than 4% for the month and coming off its longest weekly winning streak since 2017. The Dow and Nasdaq are up more than 4% and 5%, respectively.

Figures around the globe

European markets closed higher. London’s FTSE added 0.31 per cent, Frankfurt gained 0.56 per cent, and Paris closed 0.08 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.41 per cent, Hong Kong’s Hang Seng lost 0.75 per cent while China’s Shanghai Composite closed 0.05 per cent higher.

The Australian share market closed 0.84 per cent higher at 7,489.07

Dividends payable
Elders Ltd (ASX:ELD)
Dalrymple Bay Infrastructure Ltd (ASX:DBI)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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