S&P 500 Index - Daily Chart - December 1-28, 2023 (Source: Tradingview)

December 1

A promising December is shown with it being the third-best trading month and an upcoming election year, strengthening the market trading months prior. The Dow climbed by 294 points, the S&P went up 0.59% and the Nasdaq ended the day 0.31% higher. Though the first week of December is predicted to be full of losses, a goldilocks scenario in the market and seasonal incline will ultimately bring the market higher, mostly in the second week.

December 4

With post-November stocks being high but overbought the market starts to dwindle, taking a breath after rallying. Dow stocks lost 41 points in value and the S&P decreased by 0.54% while the Nasdaq suffered a nearly 1% loss. Market leaders lagged as beaten-up sectors such as consumer staples staged a comeback.

December 5

Wall Street was relatively quiet as the Dow and S&P lost 0.22% (79 points) and 0.54% respectively whereas the Nasdaq eked out a 0.24% gain. With the market stalling after a strong November rally, futures barely move despite signs of a loosening labor market. The 10-year treasury yield has sunk below 4.2%, giving relief to all mega-cap tech names.

December 6

Stocks had gains early this Wednesday morning but soon were deprived of them thus extending the market’s losing streak to three days. The Dow fell by another 70 points, the S&P lost 0.39%, and the Nasdaq ended 0.59% lower. Futures rose along with a decline in bond yields after some soft employment data but overall consumers wait for the upcoming November Jobs Report to determine their stance in regards to the jobs market.

December 7

Stocks calmly move upward as investors brace for tumultuous market-moving data on the following day. The Dow broke its losing streak with a 62-point gain, likewise for the S&P which rose 0.80%, and especially the tech-heavy Nasdaq which jumped up 1.40% this trading session. Tech and communication stocks rose greatly due to Google’s release of its Gemini artificial intelligence model.

December 8

The major averages rode hopes for a soft landing scenario, clinching a 6-week win streak this Friday. The Dow rose by 130 points, the S&P went up 0.41%, and the Nasdaq ended the week with a 0.39% gain. A strong labor market shown by the November Jobs Report along with a boost in consumer sentiment and fading inflation projections all worked in conjunction to drag stocks upward.

December 11

Wall Street kicks off the week with modest gains as broad-based momentum across the board helps boost consumer sentiment. The Dow went up another 157 points and the S&P climbed 0.39% higher while the Nasdaq gained 0.64% this trading session. Investors look toward upcoming market-moving catalysts with most concerns revolving around inflation and rate hikes in 2024.

December 12

The market rises yet again with all major averages sitting near highs with inflationary data pushing stocks upward. The Dow drifted 173 points higher followed by the S&P and Nasdaq which is up 0.46% and 0.82% respectively. Though markets lost balance after a fall in futures and a rise in bond yields, stocks ultimately rose with a softer inflation print.

December 13

Interest rates were left alone for the end of the year but Fed Chair J Powell appeared to set the stage for rate hikes in 2024 via dovish commentary, leaving the market cheering. The Dow leaped by a 512-point margin, and the S&P went up greatly by 1.37%, likewise for the Nasdaq which rose by 1.27%. With future rate hikes being questioned and rate cuts being put into view, market bulls and the market itself rallied this trading session.

December 14

The market rally continues as major averages reach record highs while a plethora of stocks break them. The Dow rises by another 158 points and the S&P drifts 0.3% lower while the Nasdaq also declined by 0.25%. A broad rally brings stocks higher at the risk of making them all overbought and pricy, the S&P trading at 19.2 times forward earnings.

December 15

The week concludes in green, bringing the major averages a 7th addition to their win streak. The Dow went up 56 points and the Nasdaq moderately increased by 0.52% while the S&P ended flat with a 0.01% loss. Real estate and material stocks led the market this week while defensive sectors such as consumer staples lagged.

December 18

The week is kicked off with more positives all across the major averages with the S&P becoming ever-so-close to its all-time closing high. The Dow ended the day with virtually no change (+0.86 points) while the S&P went up 0.45% and the Nasdaq climbed 0.64% higher. Global shipping stocks rose as conflicts in the Red Sea diverted trading routes and are predicted to put more pressure on freight rates.

December 19

Both stocks and optimism in the market reach profound highs as investors look towards a future soft-landing scenario. The Dow jumped up 251 points while the S&P and Nasdaq climbed 0.59% and 0.49% respectively. As bullish attitudes run rampant throughout Wall Street, major averages break past year highs and approach records.

December 20

Stocks walked throughout a normal trading day until eventually stepping on quicksand and falling toward the session end. Dow stocks leaped and fell 475 points, the S&P declined by 1.47%, and the Nasdaq was lowered and ended down 1.53%. Despite bond yields lowering and a lack of market-moving catalysts, stocks simply pulled back in response to an overbought market.

December 21

In contrast to the previous trading session, the market ended up rallying by the end of this Thursday. The Dow jumped up 322 points while both the S&P (+1.03%) and Nasdaq (1.23%) also wiped losses from the previous day. With December commencing its final act, a Santa Claus Rally brings the major averages up.

December 22

Positive inflationary news helped stocks push upward with the Santa Claus Rally adding additional support to the movement. Dow stocks declined by 18 points but the S&P rose 0.17% and the Nasdaq went up 0.12%. As earnings season continues into the new year, only 50% of the current companies are beating revenues.

December 26

As the year nears its close the S&P becomes continuously closer to record highs with news of Israel supporting chip producers serving as a force to push the major average higher. The Dow went up 159 points, the S&P climbed 0.42% higher, and the Nasdaq ended up 0.60%. War between Israel and Hamas along with threats from Iranian-backed Houthis in Yemen both contribute to a rising energy price.

December 27

The Dow reached an all-time high with a 111-point increase while the S&P and Nasdaq had meager gains of 0.14% and 0.17% respectively. Walmart Biotech company Amgen and Caterpillar both hold huge contributions in regards to the Dow’s increase for the day. Gold rose 1% hitting levels near highs while oil prices fell by 2% due to conflicts in the Middle East.

December 28

The S&P 500 neared a new all-time high with a modest 0.1% gain, approaching its record close set in January 2022. The Dow Jones Industrial Average also rose by 33 points, and the Nasdaq Composite increased by 0.1%. With two days left in 2023, major averages are set to end the year with significant gains: the Dow and S&P 500 up by nearly 14% and 25% respectively, while the Nasdaq, boosted by AI enthusiasm and mega-cap tech recoveries, is expected to have its best year since 2003 with a 44.7% rise. The ongoing "Santa Claus rally" suggest a favorable outlook for stocks in 2024, amidst rate cut expectations and easing inflation.