S&P 500 rally runs out of steam

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Note: Figures recorded at 7:45am AEDT. The closing figures and video recording will be available at 9:00am AEDT.

The Dow Jones Industrial Average fell Wednesday as investors cashed in some profits following the market’s recent hot streak. Shares of FedEx, seen as a barometer for the economy, cratered following poor results.

The 30-stock Dow slid 62 points, or 0.2%. The S&P 500 declined 0.3%, while the Nasdaq Composite was lower by 0.2%.

The S&P 500 has risen more than 4% this month and more than 24% year to date, while the Dow has added more than 4% and 13%, respectively. The Nasdaq is up by more than 5% for December and 43% for 2023, putting it on pace for its best year since 2020.

FedEx was the biggest laggard in the broader index, losing more than 10%. The package delivery giant issued a disappointing revenue outlook for the fiscal year, and reported fiscal second-quarter results that fell short of expectations on the top and bottom lines. The Dow Jones Transportation Average slid 0.5%.

Google-parent Alphabet was the best performer in the S&P 500, gaining more than 2% and reaching a new 52-week high. Other tech stocks such as Meta Platforms rose 0.6%, while Amazon added 0.6%, as bond yields declined.

The December consumer confidence survey that came in stronger than expected helped buoy investor sentiment. The index, a measure of what Americans think of current and future economic conditions, rose to 110.7 in December, above the 104.5 expected by economists polled by Dow Jones.

Bitcoin miners continue to surge with the Valkyrie Bitcoin Miners ETF (WGMI) jumping 9% on Wednesday as it caps a blockbuster year with strong momentum. 

Figures around the globe

European markets closed higher. London’s FTSE gained 1.02 per cent, Frankfurt lost 0.07 per cent, and Paris closed 0.12 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.37 per cent, Hong Kong’s Hang Seng added 0.66 per cent while China’s Shanghai Composite closed 1.03 per cent lower.

The Australian share market closed 0.65 per cent higher at 7,537.88.

Dividends payable
Hancock & Gore Ltd (ASX:HNG)

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

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