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The S&P 500 Index closed on Friday, December 1, 2023, up by 0.19%, reaching a 5-week high, while the Dow Jones closed up 0.22% and the Nasdaq 100 rose 0.43%, hitting a 1-month high. The upward movement was attributed to optimism regarding the economic outlook and expectations of future Federal Reserve rate cuts.
Key economic indicators included a rise in the September core PCE price index by 0.3% month-over-month and a year-over-year increase of 2.8%, which aligned with expectations. Additionally, US personal income rose 0.4% month-over-month, surpassing predictions of a 0.3% increase. The University of Michigan’s US December consumer sentiment index increased to 53.3, exceeding the expected 52.0.
In Q3 corporate earnings reports, 83% of S&P 500 companies surpassed forecasts, resulting in an overall earnings rise of 14.6%, more than doubling expectations of 7.2% year-over-year. Additionally, markets are anticipating a 95% chance of a -25 bp rate cut at the Federal Open Market Committee meeting scheduled for December 9-10.
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