“Year-End US Stock Market Rally”
US stock markets are on pace to wrap up the year with double-digit gains.

The S&P 500, which is hovering near its all-time high, closed up 25% for the 
year yesterday.

The technology-heavy Nasdaq closed up 45% for the year and is nearing its best 
year since 2003.

The Dow closed up 14% for the year, setting a seventh record high for the month 
yesterday.

This year's rally marks a reversal from 2022, when all three major indexes 
closed lower (S&P 500 -19.4%, Dow -8.8%, Nasdaq -33.1%), ending the worst year 
for markets since 2008.

Gains in 2023 have been partly due to the rise of artificial intelligence and 
big tech stock increases, primarily with a group known as the Magnificent 
Seven: Alphabet, Amazon, Apple, Meta, Microsoft, Tesla, and Nvidia.

A softening economy, marked by a cooling labor market and easing inflation, 
paired with next year's expected interest rate cuts also helped drive stock 
market gains.

The annual inflation rate was at 3.1% in November, about a percentage point 
away from the Federal Reserve's annual target rate.

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