Stocks kick off slightly higher in last week of 2023

US stocks opened higher on Tuesday to start the last week of the year, as traders aimed to end 2023 on a strong note. The S&P 500 climbed 0.3%, and the Nasdaq Composite advanced 0.4%.

The Dow Jones Industrial Average gained 100 points, or about 0.3%. Intel rose nearly 3% after Israel’s government gave the chipmaker a $3.2 billion grant for a $25 billion plant in the country’s south. Manchester United added 2% after British billionaire Jim Ratcliffe finalized a deal to buy a quarter of the soccer club.

Tuesday’s moves likely signal a continuation of recent positive market trends that have boosted the major indices in recent weeks. Wall Street is coming into the holiday-shortened week with momentum after the S&P 500 registered its eighth straight weekly advance, its longest streak since 2017. The Dow and Nasdaq Composite also notched an eight-week winning streak.

Oil prices rose more than 2% on Tuesday as investors monitored conflict in the Middle East and the likelihood of forthcoming US interest rate cuts. Brent crude futures rose $1.79, or 2.3%, to $80.86 a barrel, while WTI crude added $1.89, or 2.6%, to $75.45.

Intel was the best performer in the Dow Jones Industrial Average, rising nearly 3% on news of a new chip plant in Israel. Caterpilar was another notable gainer, last up about 1.3%. The S&P 500 added 0.15%, while the Nasdaq Composite jumped 0.3%.

Former Dallas Federal Reserve President Robert Kaplan expects the central bank to begin lowering rates soon to avoid a recession as inflation recedes. He believes officials will avoid keeping policy too strict and will need to adjust benchmark borrowing late if inflation continues to decline. Caterpilar and 3M also saw significant gains.