Bonds & Stocks
Stocks struggled to find solid ground after a rally that put the market near a record on bets the Federal Reserve will cut rates next year. Without any major economic data or significant corporate events, the S&P 500 wavered. The S&P 500 traded about 0.5% away from its alltime high of 4,796.56. Treasuries held small gains ahead of a $58 billion sale of five-year notes — a day after shorter maturities drew strong demand from buyers seeking to lock in higher yields before the Fed starts easing policy.
Economy
US consumer confidence rose in December by the most since early 2021 as Americans grew more upbeat about the labor market and the inflation outlook. The Conference Board’s index increased to 110.7 in December from a revised 101 reading in November, data published Wednesday showed. The median estimate in a Bloomberg survey of forecasters called for a 104.5 reading. A measure of expectations — which captures the outlook for about six months out — advanced as consumers saw better business conditions, incomes and labor-market prospects. Expected inflation a year ahead fell to the lowest level since late 2020.
World
Shipping giant Hapag-Lloyd AG said it will keep its vessels away from the Red Sea even after the launch of a US-led taskforce to protect the key trade route from militant attacks. The container liner said it will continue to reroute its vessels via the Cape of Good Hope, a detour of several thousand miles. It follows a spate of attacks on merchant ships — by Yemeni rebels acting in support of the Palestinians — on a route that handles about 12% of global trade.