Broker Check

Weekly Market Update December 29, 2023

December 30, 2023

Weekly Market Update - 12/29/2023

For the Week: S&P 500 4,770 +0.3%; NASDAQ 15,011 +0.1%, Dow Jones Industrial Avg 37,690 +0.8%
For the Year: S&P 500 +24.2%, NASDAQ +43.4%, Dow Jones Industrial Avg +13.7%


Top Interesting Market Events for 2023

As the old Chinese proverb says, May You Live in Interesting Times! 2023 did not disappoint. Below is a listing of some of the notable events we saw this year under their respective months.

January

  1. China ends its Zero-Covid Policy
  2. The U.S. government hits its statutory $31.4 trillion debt limit

February

  1. “Balloon-gate” as Chinese “weather ballons” traverse the entire United States
  2. Kansas City Chiefs win the Superbowl

March

  1. Silvergate Bank voluntarily liquidates
  2. Silicon Valley Bank and First Republic Bank fail; U.S. Banks post their worst daily performance since 2020
  3. Xi Jinping re-elected as President of China for an unprecedented third term
  4. OpenAI launches GPT-4
  5. Taylor Swift kicks off her record-breaking Eras Tour
  6. UBS buys failing Credit Suisse in a government-backed deal

April

  1. LVMH became the first European company to reach $500 billion in market value. Chairman Bernard Arnault temporarily eclipses Elon Musk as world’s richest man.

May

  1. JP Morgan Chase takes over First Republic Bank
  2. WHO ends COVID-19 declaration of a global health emergency
  3. Coronation of Charles III and his wife, Camilla, as King and Queen of the United Kingdom
  4. Nvidia blockbuster earnings report kicks off Artificial Intelligence hype in earnest

June

  1. U.S. government suspends the debt ceiling
  2. New York City and parts of New Jersey are covered in orange smoke from Canadian wildfires
  3. S&P marks 20% rally from its October 2022 lows
  4. The U.S. May CPI report officially marks a halving in inflation

July

  1. The Federal Reserve “pauses” its most aggressive rate hikes in decades
  2. Titan submersible implosion kills all aboard
  3. Hottest global temperature ever recorded
  4. The widely anticipated “Barbenheimer” weekend kicks off

August

  1. The Federal Reserve hikes interest rates for the final time in 2023
  2. Fitch downgrades credit rating for the U.S. government from AAA to AA+
  3. Wildfires ignite on the Hawaiian island of Maui
  4. U.S. CPI inflation reaccelerates for the first time in over a year

 September

  1. Chip designer ARM’s IPO soared ~25% in market debut – marking the largest IPO of the year
  2. Brent crude prices rally almost 20% in a month to peak at $97 a barrel.

October

  1. McCarthy ousted as House Speaker amid government budget and shutdown debate
  2. Start of Israel-Hamas conflict
  3. 10-year U.S. Treasury yield hits 5% in intraday trading for the first time since 2007
  4. FTX founder Sam Bankman-Fried convicted of one of largest financial frauds on record

November

  1. Eli Lilly weight loss drug obtains approval in the U.S. and UK
  2. The “Magnificent Seven” stocks add more than $200bn of market value in a single day
  3. U.S. aggregate bonds post their best monthly returns since 1985
  4. Gold closes at an all-time high

December

  1. Conference Of the Parties (COP)28 climate talks end with a call to transition away from fossil fuels
  2. The Federal Reserve signals rate hikes are over, and cuts are in the cards

Sources: Bloomberg Finance L.P., J.P. Morgan Wealth Management (report of 12/15/2023). Data as of December 14, 2023. M&R Capital Management leadership team

Below is a chart from JP Morgan, with the numbered events above, along with a chart of the S&P 500 Index (for the year finishing up 24.2%) 


What is the punchline here?  Many events during the past year may have caused investors to panic and press the sell button for their equity holdings.  Those investors who did so are now kicking themselves and wishing they had stayed the course.  Remember the lessons of 2023, and let’s have a fantastic 2024!

 

Happy New Year