Investing.com - US stock futures were trading in a tight range during Thursday's evening deals, as Wall Street aims to conclude a successful year on a high note, potentially setting a new record.
By 6:30 pm ET (11:30 pm GMT) Dow Jones Futures were flat while S&P 500 Futures and Nasdaq 100 Futures each ticked 0.1% higher.
As we approach the final trading day of 2023, the S&P 500 stands less than 0.5% shy of a new record high. This could serve as a significant highlight of a rally that has gathered momentum in the year's final months. The S&P 500 has seen a 24.6% rise in 2023, with the Dow Jones increasing by 13.8%. Leading the pack, the Nasdaq Composite has registered a 44.2% gain for the year, setting it on track for its largest annual increase since 2003.
The enthusiasm around artificial intelligence marked much of 2023, driving substantial gains for the "Magnificent 7" stocks, including NVIDIA Corporation (NASDAQ:NVDA) and Microsoft Corporation (NASDAQ:MSFT). These gains propped up the indexes despite the average stock facing challenges due to rising interest rates, contributing to the tech-heavy Nasdaq's outstanding performance.
However, with the Federal Reserve indicating an end to rate hikes and potential rate cuts in the coming year, the 10-year Treasury yield fell from above 5% in late October to less than 3.9% on Thursday. This has given investors increased confidence in a possible "soft landing," where the U.S. economy can avoid a recession.
As a result, the market rally has expanded in the fourth quarter, with the industrial-heavy Dow already setting a series of record highs this month. The small-cap Russell 2000 has risen almost 14% in December, positioning it for its best month since November 2020.
On the bond markets, 10-year rates were at 3.842%.