The Week In Review: Equity Indexes* Dividend Yield*
Markets ended the week, and year, in positive territory. The S&P 500 was positive for the week while the Russell 2000 (small-cap U.S. stocks) slightly declined. 1
Bonds were also up for the week and ended the year in positive territory after a performance rebound in Q4. 10-year treasury yields declined and ended the year at nearly the same level as 2022.1
Upcoming Economic Releases:
Data regarding job openings and the unemployment rate will be reported this week. Jobs were very resilient in 2023 and will be closely watched for trend changes in 2024.
Upcoming Economic Releases:
As we enter 2024, the biggest question is “can we keep this going?” It is our opinion that, in the short-term, expect a bit of volatility and potential correction after a furious rally to end 2023. In the intermediate-term, however, there are still signs for optimism.
For the bond market, we don’t believe the Fed will react as aggressively as the market anticipates unless economic trends worsen from here. Long-term rates have been extremely volatile since 2022 and this is probably going to continue as investors monitor Fed actions and economic trends closely. The current bond environment would suggest prudence over aggression as the payment for relative safety continues to be attractive.
In the stock market, we still believe that economic trends and corporate earnings are at areas that are supportive for continued growth. We welcomed the broadening environment where more stocks participated in the end-of-year rally and this would be healthy for the overall market in 2024.
Data Sources:
1: https://am.jpmorgan.com/content/dam/jpm-am-aem/americas/us/en/insights/market-insights/wmr/weekly_market_recap.pdf
2: https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-market-weekly-update
* Gradient Investments, LLC – An SEC Registered Investment Advisor 888.824.3525 | www.gradientinvestments.com. Please consult your advisor before making any investment decisions. The information herein is for informational purposes only and should not be used as the sole basis for making an investment decision. For more information, please request a copy of Gradient Investments’ ADV Part 2A. Investing involves risk including the potential for loss, past performance is no indication of future results.