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The S&P 500 finished off a strong 2023 on a high note in December. The index gained more than 4% on the month and closed out the year up better than 26% based on total return and on the brink of new all-time highs.
Investor concerns over rising interest rates, slowing economic growth and high inflation subsided in 2023, and investor enthusiasm for artificial intelligence technology fueled one of the Nasdaq Composite’s best annual total returns since 2009. Technology stocks, growth stocks and cryptocurrencies were top performers in 2023 as appetite for risk assets returned to the market.
Heading into 2024, inflation seems to be trending steadily lower. However, some analysts and economists are concerned the final leg of the Federal Reserve’s battle with inflation will be more difficult than expected, and a U.S. recession could still be looming.
Rate Hikes Paused
Inflation and interest rates will likely remain two of Wall Street’s primary concerns in early 2024.
The consumer price index gained 3.1% year-over-year in November, down from peak 2022 inflation levels of 9.1%. The Fed’s battle against inflation has been helped by energy prices, which have fallen on an annual basis for nine consecutive months.
The personal consumption expenditures price index increased 2.6% year-over-year in…
