US stocks inch higher with S&P 500 near record high as bond yields plunge further

• US stocks inched slightly higher on Wednesday with indexes largely flat.
• That left the S&P 500 still hovering just below its record closing high.
• US bond yields plunged after an auction of five-year Treasurys was met with strong demand.

US stocks edged higher on Wednesday, finishing largely flat and leaving the S&P 500 hovering just below its all-time closing high.

The benchmark index remains less than 1% away from its January 3, 2022, record close of 4,796.56, with the seasonal Santa Claus rally so far failing to produce a more decisive move.

Still, the S&P 500 is up 24% in 2023, rebounding from the 20% dive in 2022, and investors remain upbeat heading in the new year amid hopes for rate cuts from the Federal Reserve. Meanwhile, the Dow Jones Industrial Average has already set new record highs this month. 

Bond market investors are bullish too, as a $58 billion auction of five-year Treasurys was met with strong demand. That sent yields down across maturities, with the 10-year rate dipping below 3.8%.

Here's where US indexes stood at the 4 p.m. closing bell on Wednesday: 

• S&P 500: 4,781.64, up 0.14% 
• Dow Jones Industrial Average: 37,657.11, up 0.3% (+111.78 points)
• Nasdaq Composite: 15,099.18, up 0.16% 

Here's what else happened today: 

• This "magic number" for mortgage rates will thaw the housing market and allow prices to drop, DoubleLine said.
• You've got "your head in the sand" to be bearish in this market, as investors move to greed from fear, a Morgan Stanley portfolio manager said.
• Get ready for more corporate defaults in 2024, even if the Fed is done hiking interest rates, Fitch Ratings said.
• The Roaring 20s could be back as the stock market and economy show signs of strengthening.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil fell 2.2% to $73.90 a barrel. Brent crude, the international benchmark, eased 2% to $79.43 a barrel. 
• Gold ticked up 0.9% to $2,089 per ounce. 
• The 10-year Treasury yield plunged 9.2 basis points to 3.794%.
• Bitcoin rallied 2.4% to $43,157.