In Markets "In a Nutshell"

Markets “In a Nutshell” for January 22, 2024

Investment Week at a Glance

Stocks finished higher for the week.  The Dow Jones Industrial Average rose 0.70%, the S&P 500 was up 1.20%, and the NASDAQ rose 2.30%. Foreign stocks (MSCI EAFE) were down, falling 2.50%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.13%.  (Data source: Wall Street Journal)

S&P 500 Hits All Time High

The S&P 500 closed at an all-time high on Friday for the first time in two years. This has been an impressive run for equities as they’ve had to battle their way through inflation and rates as well as conflict across the World in the past couple of years. This new high comes as markets had a strong 2023 fueled by the “Magnificent 7” which was up over 76% for the year. Most other companies had gains for 2023 but nothing like the big mega-cap companies. The equal-weight S&P 500 was only up 11% compared to the S&P 500 which was up 24%. If we investors want to see more gains for 2024 it will most likely need to be a broader rally rather than a handful of companies pushing everything higher.

Upcoming Fed Meeting

The first FOMC meeting will take place next week as the expectations are that the Fed will leave rates unchanged. Investors will pay close attention to what Fed Chair Powell has to say about possible rate cuts in the coming months as currently, the market has a 54% probability priced in that we see a rate cut in the March meeting. The Fed has not initiated that they would cut rates that soon so it could cause some volatility if the Fed sticks to its position of leaving rates unchanged longer than the market expects. Everyone is in consensus that the Fed will cut rates at some point this year, the main story for markets throughout the year will be when not if. Once the Fed starts to cut rates, it could be good news for markets unless inflation starts to tick higher once again.



How much was the Dow Jones up in 2023? (Scroll Down for Answer)

  1.     14%
  2.     19%
  3.     22%
  4.     27%





























































Answer below.



Have a Great Week!











1.    14%.    The Dow Jones increased by 14% in 2023 as markets performed well for the year but were mainly driven by the mega-cap companies.