Canada’s main stock index closed lower on Thursday, as the materials and energy sectors saw significant declines due to a pullback in commodity prices. Meanwhile, the S&P 500 ended the day slightly higher, retracing early gains just before the closing bell on the second-to-last trading day of 2023.
The S&P 500 finished the session just 0.3% below its record closing high set on January 3, 2022. The Dow closed with modest gains, while the Nasdaq ended slightly lower. All three indexes were still on track for monthly, quarterly, and annual gains.
Ryan Detrick, chief market strategist at Carson Group in Omaha, noted that the end-of-year rally was one of the strongest seen in recent times. He highlighted how the rally had started before the Federal Reserve’s pivot in mid-December, showcasing the resilience of the market.
The possibility of the S&P 500 surpassing its previous all-time high could indicate a shift towards a bull market in 2024, according to Detrick. Economic data released earlier in the day painted a picture of a softening but resilient economy, leading to speculation that the Federal Reserve might cut its policy rate sooner than expected to prevent a recession.
In Canada, the S&P/TSX Composite Index closed at 20,929.38, down 0.41%. The materials sector took a hit, with gold and copper prices seeing declines. The energy sector also faced losses, as oil prices dropped due to easing concerns about supply disruptions in the Middle East.
The health-care sector, however, saw gains, driven by a surge in cannabis company Tilray Brand shares. Information technology stocks like Shopify also performed well, with the sector leading in year-to-date gains.
Overall, the Dow Jones Industrial Average rose slightly, the S&P 500 closed higher, and the Nasdaq ended lower. Utilities saw the biggest gain among the S&P 500 sectors, while energy shares experienced the most significant losses.
Chinese stocks listed in the US, including Alibaba Holdings and JD.Com Inc, saw gains as China’s blue-chip stocks recorded a notable jump. However, some companies like CytoSorbents and Boeing faced declines due to various factors affecting their businesses.
In summary, the stock market saw a mix of gains and losses on Thursday, with various sectors and individual companies experiencing different outcomes. Investors continue to monitor economic data and geopolitical developments as they position themselves for the year ahead.