Markets read clues from newly released inflation numbers about whether central bank plans would change

Cookeville – The Stock Market is up for the fourth straight month, according to the Nasdaq 100 index.

The S&P 500 ended the month at 4.643.7 against a gain of 0.46%, while Dow Jones was up by 0.48 %, reaching 36,577.94. The Nasdaq composite also rose by 0.7%.

There are three potential scenarios for the Stock Market in 2024 according to a report by Trading.Biz:

  • The three major indices post fresh yearly gains as 2023 will end. 
  • 2024 being an election year is key for investors as several scenarios are possible. 
  • Fed’s rate guidance remains the top concern for investors, especially in Q1-2024. 

Consumer prices in November grew by 3.1% annually and 0.1% monthly, matching predictions and indicating a 3.1% year-on year growth rate with a flat monthly CPI. The Fed holds significant influence over stock trajectories and options volatility. 

There is an anticipation of cut interest rates, but if that fails to materialize, the stock market become weaker. Rate risks may become more prominent in the new year.

“This shift in focus may prompt investors to embrace portfolio hedging and engage in speculative activities within the technology and financial sectors, targeting macro-market movements,” according to the report. “Interest in non-equity risk investments is expected to grow, driven by individuals nearing or in retirement. With limited time to recover from potential losses, investors may seek alternative strategies if the stock market narrative turns unfavorable.”

Image by Freepik.

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Ron Moses is the managing editor of the Upper Cumberland Business Journal and can be reached via email. Send an email.

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