The S&P 500 closed out 2023 with a surprising gain of 24% as inflation slowed, the economy remained strong and the Federal Reserve signaled an end to its rate-hiking campaign. Stocks rose for nine straight weeks to end the year, its best winning streak since 2004. The Dow Jones finished the year with a 13.7% gain and notched a new record high. The Nasdaq Composite rose 43.4% for its best year since 2020. Last week, the S&P 500 added 0.3%, the Dow Jones gained 0.8% and the Nasdaq added 0.1%. After a rough 2022, stocks bounced back in 2023 and the rally looks likely to continue into the new year.
Economic reports from last week came back mostly negative:
•National Economic Activity - lower than expectation
•Single-Family Home Values - lower than expectation
•Pending Home Sales - lower than expectation
•Manufacturing (Dallas) - higher than expectation
•Manufacturing (Richmond) - lower than expectation
•Jobless Claims - higher than expectation
In a holiday-shortened week, investors will look for guidance from economic reports like Housing, Manufacturing, National Economic Activity and Jobless Claims.