HELSINKI, Jan. 26, 2024 /PRNewswire/ — Over the past year, the US stock market has defied expectations, surpassing projections and showcasing an impressive recovery from the daunting bear market of 2022. Unlike previous downturns that lingered, this remarkable rebound was achieved in just two years. Investors forgot they ever doubted the Fed and whipped out the Champagne when Jerome Powell promised to get the party started again in 2024. The rejuvenation of the market can be attributed to the resounding success of the Magnificent Seven tech rally (Nvidia and AMD printed money faster than an army of bitcoin miners), surprisingly solid GDP growth exceeding 2%, and the prevailing investor confidence in the Federal Reserve’s commitment to rate cuts in 2024.
The Magnificent Seven megacaps contributed nearly half of overall market upside, reviving the Nasdaq from its pandemic lows. But growth extended beyond FAANG as communication services jumped 54.5% and small caps rebounded strongly late in the year.
Contrary to expert predictions, the US stock market witnessed an outstanding performance throughout 2023 and speeds up in January 2024. Skeptics anticipated limited stock returns, but the S&P 500 reported an impressive 24.4% growth for the year.
At the same time, BeatMarket’s index BMI that tracks top performers of the US stock market, returned almost 30% for the whole year.
In two years (since August 2021), the BMI has outperformed the S&P 500 by 21.5%. Read the original article on BeatMarket.
“The strong performance of equity markets in 2023 demonstrates the continued resilience of the US economy. Such robust performances bode well as analysts and strategists now turn their attention towards the coming fiscal year. While 2024 is unlikely to repeat the heady success of its predecessor in outright magnitude, discerning observers know that the stock market keeps climbing higher most of the time: it is only a matter of what sectors or industries are leading the next leg of the race.
Here at BeatMarket, our mission remains steadfast: our researchers will analyze the impressive comeback of the US equities in 2023 to identify opportunities amid inevitable changes in the economic landscape. Through comprehensive reports grounded in data and rigorous analysis, we aim to provide clients the insights needed to make well-informed investment decisions.”
SOURCE BeatMarket Oy