Markets hover near record levels as Wall Street prepares to close early for Christmas holiday

"Wall Street was largely unchanged early Wednesday as markets hovered near record levels on a holiday-shortened trading day.The Dow Jones Industrial Average was up 0.1% as of 9:45 a.m. Eastern. The S&P 500 index was up less than 0.1% and the Nasdaq Composite was down 0.1%.Markets will close at 1 p.m. ET for Christmas Eve and are closed for Christmas."

"Much of the focus remains on the state of the U.S. economy and where the Federal Reserve will move interest rates. Investors are betting the Fed will hold steady on interest rates at its January meeting. Recent reports show high inflation and shaky confidence among consumers worried about high prices. The labor market has been slowing and retail sales have weakened."

"The number of Americans applying for unemployment benefits fell last week and remain at historically healthy levels despite some signs that the labor market is weakening.U.S. applications for jobless claims for the week ending Dec. 20 fell by 10,000 to 214,000 from the previous week's 224,000, the Labor Department reported Wednesday. That's below the 232,000 new applications forecast of analysts surveyed by the data firm FactSet."

U.S. equity indexes traded near record levels with modest moves across the Dow, S&P 500 and Nasdaq during a holiday-shortened session. Markets closed early for Christmas Eve and remained closed for Christmas, with light volumes expected as many investors wind down positions. Investors largely expect the Federal Reserve to hold interest rates at its January meeting amid high inflation, weakening consumer confidence, a slowing labor market and softer retail sales. Weekly jobless claims fell by 10,000 to 214,000, undershooting forecasts. Dynavax surged after Sanofi agreed to acquire the company for $2.2 billion. Precious metals rose and U.S. crude traded near $58.61 a barrel.

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