Traders at work on the trading floor of the New York Stock Exchange (NYSE) on January 5, 2023.
Andrew Kelly | Reuters
Stocks rose for a second straight time on Monday as traders tried to regain some of the ground they lost in 2022.
The Dow Jones Industrial Average rose 276 points (0.8%) while the S&P 500 and Nasdaq Composite rose 1.4% and 2.2% respectively.
This follows shortened week wins for the three major indices as the Dow and S&P 500 posted their best weeks since November.Ah Some of those profits came on Fridaythe Dow rose 700 points, while the S&P 500 and Nasdaq rose 2.3% and 2.6%, respectively.
Friday’s gains were spurred by the latest set of economic data. Nonfarm payrolls were slightly better than expected, but wages rose at a slower pace than expected. That and data showing a shrinking service sector have raised hopes that the central bank’s rate hikes are achieving their intended goal of cooling the economy.
The data helped investors shake off pessimism early in the week following the release of December’s Federal Reserve meeting minutes. “for a while”
“Even the Fed is starting to tell the market that the work is almost done,” said Jamie Cox, managing partner at Harris Financial Group.
Monday is the fifth trading day and reminds investors that: classic wall street rules This suggests that if the stock performs well in the first five sessions, the market will rise at the end of the year. According to Equity Traders Almanac, the S&P 500 rose 83% of the time in its first five trading sessions, ending the year with an average gain of 14%.
Investors will be on the lookout for consumer credit data due later in the day. They’re also keeping an eye on his December CPI report due out on Thursday, and big bank earnings due on Friday.
