Dow extends winning streak as S&P 500 approaches record gain

Dow Jones and S&P 500 closed higher on Tuesday, with all three major averages on track to finish December with gains.

S&P 500 is up 4.4% for the month and comes off its longest weekly winning streak since 2017. Dow and Nasdaq are up 4.5% and 5.5%, respectively.

S&P 500 is approaching its record high, with the broad market index gaining 0.59% to 4,768.37. The Nasdaq Composite advanced 0.66% to 15,003.22, the first time the tech-heavy index closed above the 15,000 level since January 2022.

Home construction and home builders’ stocks rose, continuing their recent rally as falling Treasury yields bolster the outlook for the housing market.

The iShares US Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB) rose 1.4% and 1.3%, respectively. Energy stocks outperformed, with the S&P 500 sector up by 1.2% as oil prices rose.

Equities have hit rally mode as of late, with last week’s indication of three likely interest rate cuts from the Fed in 2024 providing a catalyst for the market.

Signs of cooling inflation and a pullback in Treasury yields have also helped risk assets during a typically strong season for equities. This bias of buying stocks is taking hold, and unless news changes it, we are likely to drift higher every single day due to it.