The US stock market could continue to see gains with investors showing a positive sentiment overall.
While the lower volumes that the market is seeing during the last few trading sessions of the year could weigh on its advances, investors’ return from the holiday period could drive volumes and prices to new highs.
The market has been able to recover strongly since the end of October with more prominent expectations of interest rate cuts early in 2024. The more dovish stance of the Federal Reserve could also support a stronger performance and a more risk-on sentiment.
The technology sector could also continue to drive gains thanks to the strong developments in the AI field and the higher demand for semiconductors.
The sector has recorded large gains this year and could continue to see good prospects although tensions between the US and China could create some risks.
Other sectors could benefit from the downtrend in treasury yields and expectations of lower interest rates as financing costs decline, offering more room for companies to grow.
In the meantime, traders could monitor the release of new economic data today on the job market among others to gauge the state of the US economy. While new data could affect monetary policy expectations to a certain extent, the anticipated interest rate trajectory could remain on its current path.
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