- On the final trading day of the year, US futures edged higher, implying that the S&P 500 may make a final push towards a record high, as global stocks continued to post their greatest yearly performance since 2019.
- The S&P 500 hovered only a few points below its all-time high on Thursday, extending its 2023 gain to about 25%, with futures predicting small gains on Friday, while the Nasdaq 100 futures were up around 0.1%, with the underlying index already having its best year since 1999.
- The dollar index remained steady amid thin liquidity in currency markets, on track for its worst annual loss since the outbreak of the pandemic, on expectations that the Federal Reserve will aggressively cut interest rates in 2024. Treasuries extended Thursday's losses, with the 10-Yr yield rising three basis points. Global bonds, meanwhile, remained on track for their biggest two-month gain on record.
- The STOXX Europe 600 index gained 0.3%, bringing its year-to-date gain to 13%. Trading volumes were light, with a number of regional markets, including Germany and the United Kingdom, closing early on Friday. The MSCI All Country World Index has gained over 20% this year.
- Warnings about an overbought market have raised concerns about a retreat, with some analysts claiming that traders have gone too far, too fast in pricing in a dovish Fed pivot, but the surge is still intact for the time being.
