Here are the key updates for investors to kickstart their trading day:

1. Striking Distance

The S&P 500 is very close to reaching its highest point ever. On Tuesday, it went up by 0.4% and closed at 4,774.75. This puts it less than 1% away from its highest closing mark of 4,796.56, which was set nearly two years ago in January 2022. The S&P 500 has been going up for eight consecutive weeks, marking its longest winning streak since 2017.

Even with a shorter trading week, the overall positive momentum in the market is expected to push the index to a new all-time high. The Dow Jones Industrial Average and Nasdaq Composite are also on eight-week winning streaks.

2. AI Excitement

Currently, the hot topic on Wall Street is “artificial intelligence” or AI. This excitement is causing the stock prices of certain companies to go up. The top performer in the AI sector is Nvidia, experiencing a 237% increase this year. This surge is driven by a growing demand for its processors, specifically designed to handle the tasks required for training and running large language models.

Other companies like AMD, Arista Networks, and Cloudflare are also experiencing significant increases, with growth rates of 121%, 95%, and 89% respectively. This is due to the enthusiasm surrounding their processing and data center capabilities, as well as their strategic position in the AI trend.

3. 2024 Forecasts

After a year that almost led to a recession in 2023, what can we expect in 2024? Well, according to some experts, we might still face challenges. Inflation is still present, though it’s somewhat lower, and interest rates, while high, remain stable. Some economists are predicting a mild recession, potentially the least severe in history, as suggested by Raymond James. However, there’s some optimism.

A December survey by the National Association for Business Economics shows that 76% of economists believe there’s no more than a 50% chance of a recession in the next 12 months. To put it differently, more than three-quarters of surveyed economists think it’s more likely that we’ll avoid a recession in 2024 than not. So, if 2023 was the year of the almost-recession, 2024 might be its sequel, but the odds of avoiding a recession seem to be improving.

4. Apple’s Challenge

Apple is challenging a ban on importing its popular Apple Watches. This ban was imposed by the U.S. International Trade Commission in response to a complaint from Masimo, a medical monitoring technology company. Masimo accuses Apple of hiring its employees, taking its pulse oximetry technology, and using it in the Apple Watch.

Despite the ban, which the Biden administration chose not to override, Apple has filed an appeal. Additionally, they’ve submitted an emergency request to the U.S. Court of Appeals for the Federal Circuit. The aim is to temporarily lift the ban until the U.S. Customs and Border Protection makes a decision on the redesigned versions of the watches and whether they violate Masimo’s patents. The ruling for this is expected on January 12.

5. Impressive Show

Warner Bros. Discovery’s movie ‘The Color Purple’ had an outstanding performance at the Christmas box office, earning $18.15 million. This marks the best debut over the holiday since 2009’s “Sherlock Holmes” and the second-best ever for Christmas day.

Produced by Oprah Winfrey and Steven Spielberg, the film is based on the Broadway musical adaptation of the book with the same title. With this successful opening, combined with the earnings from “Aquaman and the Lost Kingdom” and “Wonka,” Warner Bros. Discovery secured the top three spots at the Christmas box office.

Summary

Investors are on the brink of a potential market milestone as the S&P 500 inches closer to its record high. The AI sector is buzzing with notable gains, led by Nvidia, while Apple challenges an import ban on its Watches. ‘The Color Purple’ shines in the Christmas box office, and 2024 forecasts hint at challenges but with improving odds of avoiding a recession.

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