The S&P 500 closed 2023 with a surprise gain of 24.2% as inflation slowed, while the economy remained strong and the Federal Reserve signaled an end to its campaign to raise interest rates.
The broader index rose for nine straight weeks to end the year, its best winning streak since 2004. Shares of technology giants lifted the Nasdaq to its best year since 2020 amid enthusiasm about artificial intelligence.
But the Standard & Poor’s index declined in the last session by 0.28% at 4769.83, while failing to penetrate a new record level, and during the session it remained less than 0.2% away from its record close of 4796.56 that was achieved in January 2022.
In addition, the Dow Jones Industrial Average closed the last session of the year, down 20.56 points, or 0.05%, to close at 37,689.54 points, below the record it achieved in the previous session above 37,700 points, but it ended the year with an increase of 13.7%. In the same vein, the Nasdaq index fell by 0.56% in the last sessions of the year to 15,011.35 points, but rose by 43.4% for its best year since 2020.
The S&P added 0.3% on the week. The Dow and Nasdaq rose 0.8% and 0.1% for the week, respectively, to grab their longest weekly wins since 2019.
Shares have bounced back this year after a volatile 2022. The support came from excitement around generative artificial intelligence, which is fueling big gains in shares of giants such as Nvidia and Microsoft.
But with the Federal Reserve signaling that it is likely to raise interest rates, and could even cut rates several times next year, 10-year Treasury yields have shrunk from more than 5% in late October to less than 3.9% on the last trading day. For 2023. With prices falling and employment data remaining strong, investors ended the year with more confidence in a potential “soft landing” as the US economy avoids a recession.
As a result, the market’s rally expanded last quarter, with the industrial-heavy Dow notching a series of record highs in December. The Russell 2000 index of small-cap stocks rose more than 12% in December and had its best month since November 2020. It also had its best quarter since the fourth quarter of 2020.
2023-12-30 04:37:07
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