NEW YORK (AP) โ U.S. stock futures were little changed Friday as the market closes out a year of surprisingly strong gains.
The benchmark S&P 500 index is just 0.3% away from an all-time high after a 24.6% gain in 2023. The Dow Jones Industrial Average is at a record high of 37,710.10. The Nasdaq shows a 44.2% gain so far this year, driven by gains from big tech companies.
The so-called Magnificent 7 companies (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla) accounted for about two-thirds of the gains in the S&P 500 this year, according to S&P Dow Jones Indices. Nvidia leads the pack with a gain of around 240%.
Stocks in European markets have also risen this year. Benchmark indices in France and Germany made double-digit gains, while Britain's rose just under 4%.
Asian markets had a mixed session on the last trading day of the year for most markets. The Nikkei 225 in Tokyo fell 0.2% to 33,464.17. It gained 27% in 2023, its best year in a decade, as the Japanese central bank inched toward ending its long-running ultra-loose monetary policy after inflation finally surpassed its target of around 2%.
Hong Kong's Hang Seng Index ended flat, while the Shanghai Composite Index gained 0.7%. The Shanghai index lost about 3% this year and the Hang Seng fell almost 14%. Weak real estate and global demand for China's exports, as well as high debt levels and faltering consumer confidence have weighed on the country's economy and stock market.
Wall Street is coming off a quiet day on Thursday. All major indices are on track to post weekly gains, with the S&P 500 on track for its ninth consecutive week of gains.
Investors in the United States began the year expecting inflation to decline further as the Federal Reserve raised interest rates. The offset would be a weaker economy and possibly a recession. But while inflation has dropped to around 3%, the economy has advanced thanks to strong consumer spending and a healthy labor market.
The stock market is now betting that the Federal Reserve can achieve a โsoft landing,โ in which the economy slows enough to quell high inflation, but not so much that it falls into a recession. As a result, investors now expect the Federal Reserve to begin cutting rates as early as March.
The 10-year Treasury yield was at 3.87% early Friday. It topped 5.00% in October, but has been generally falling since then, easing pressure on the stock.
Benchmark U.S. crude oil rose 8 cents to $71.85 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude rose 22 cents to $77.37 a barrel.
Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
