U.S. Stocks Move Mostly Higher To Kick Off Final Week Of 2023

(RTTNews) - Stocks moved mostly higher during trading on Tuesday, with the major averages all moving to the upside after ending last Friday's session narrowly mixed. The advance on the day represents a positive start to the final trading week of 2023.

The major averages pulled back off their best levels going into the close but remained in positive territory. The Dow rose 159.36 points or 0.4 percent to 37,545.33, the Nasdaq advanced 81.60 points or 0.5 percent to 15,074.57 and the S&P 500 climbed 20.12 points or 0.4 percent to 4,774.75.

A surge by shares of Intel (INTC) provided a boost to the markets, with the semiconductor giant spiking by 5.2 percent to its best closing level in well over a year.

The jump by Intel came following news the Israeli government has agreed to give the company a $3.2 billion grant toward the construction of a new $25 billion chip-making facility in southern Israel.

Stocks also continued to benefit from optimism about the outlook for interest rates following last week's tamer-than-expected consumer price inflation data.

On the heels of the data, CME Group's FedWatch Tool is indicating a 72.7 percent chance the Federal Reserve will cut rates by a quarter point in March.

Overall trading activity was somewhat subdued, however, as many traders remained away from their desks following the Christmas weekend.

A lack of major U.S. economic data may also kept some traders on the sidelines ahead of a relatively quiet week on the U.S. economic front.

Sector News

Energy stocks saw considerable strength on the day, as the price of crude oil moved sharply higher amid concerns about geopolitical tensions.

With crude for February delivery surging $2.01 to $75.57 a barrel, the Philadelphia Oil Service Index jumped by 2.1 percent and the NYSE Arca Oil Index climbed by 1.3 percent.

Intel also helped lead an advance by semiconductor stocks, driving the Philadelphia Semiconductor Index up by 1.8 percent to a record closing high.

Networking, banking and telecom stocks also showed notable moves to the upside over the course of the trading session.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday, with several markets closed for holidays. Japan's Nikkei 225 Index edged up by 0.2 percent, while China's Shanghai Composite Index slid by 0.7 percent.

Meanwhile, the major European markets remained closed on the day in observance of Boxing Day.

In the bond market, treasuries showed a lack of direction for much of the session before closing modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.5 basis points to 3.886 percent.

Looking Ahead

Trading activity is likely to remain relatively subdued on Wednesday amid another quiet day on the U.S. economic front.