U.S. Stock Futures Open Slightly Above Flatline as Winning Streak Continues

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17/12/2023 23h39

U.S. stock futures opened on Sunday, with the Dow Jones Industrial Average futures inched up 21 points, or 0.05%, signaling a positive start to the trading week. The futures tied to the S&P 500 and Nasdaq 100 also saw slight gains, rising 0.1% and 0.02% respectively.

This comes after the three major stock market averages - the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 - achieved their seventh consecutive week of gains. The Dow Jones Industrial Average set a new intraday record, while the Nasdaq 100 reached a new closing high.

The S&P 500's winning streak is particularly notable, as it marks its longest string of weekly gains since 2017. Proving resilient, the broad market index has surged by 3.3% this month. Meanwhile, the Dow Jones and Nasdaq have seen even higher growth percentages, with gains of 3.8% and 4.1% respectively.

Investor sentiment received a boost last week after the Federal Reserve indicated that three short-term interest rate cuts are expected in 2024, with inflation showing signs of cooling. This positive development, coupled with low growth expectations and intact growth momentum, has created what HSBC's chief multi-asset strategist Max Kettner described as "a backdrop that is as Goldilocks as it gets," as mentioned in a Friday note.

However, Kettner also cautioned that near-term growth and earnings expectations in the U.S. remain weak. Drawing parallels to the 2017-2018 market rally, he warned that a similar outcome may occur, stating, "So, for the first time in H2, we are starting to be wary of the positive momentum. It may be prudent to start 2024 on a more cautious note."

Looking ahead, investors will be closely watching the results of December's business leaders survey and housing market index. As Monday marks the start of the final full trading week of 2023, market participants will be eager to gauge the overall sentiment and performance of the economy as the year draws to a close.

Overall, U.S. stock futures' positive opening sets a promising tone for the week ahead, bolstered by the impressive winning streak observed across major market indices. However, as experts urge caution and note weak growth expectations, investors remain mindful of potential market fluctuations in the coming weeks.

Note: The article is generated solely based on the information provided by the user and is not based on real-time news updates.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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