Wall Street record dividends
US stock markets, a crackling 2023 and good prospects for 2024
The American stock market has already discounted, in 2023, all the optimism deriving from the probable change in the Fed's strategy on interest rates. In fact, the last months of the year, confirmed the golden year with double-digit annual, quarterly and monthly growth. Economic observers could not escape the fact that in 2023 the American economy showed unexpected resilience, managed to contain inflation, now around 3%, with an ever-lively job market and consumption consistent with this trend. In particular, the S&P recorded gains of more than 20% in 2023. Like the S&P 500, the Dow Jones and Nasdaq have also notched a streak of nine consecutive weekly gains, a record since 2019. The Dow Jones industrial average hit several all-time highs in December, including records in each of the last five trading sessions negotiation. In 2023 the profit was a substantial 14%. Among all the indices, the palm is awarded to the best it belongs to the technology Nasdaq. Over the course of the year, it had to contain various types of turbulence: from post-pandemic layoffs in Big Tech, the earthquake of Artificial intelligence. However, it closed the year with increases of 43%, the best performance since 2020. The increase to 4769 points still remains below 1000 points compared to the historic high of November 2021.
US stock markets, the successes of the 7 Big Techs
The 7 Big Techs: Microsoft, Apple, Amazon, Alphabet, Tesla, Nvidia and Meta Platforms, in the S&P 500, made a splash with growth of over 100%. Despite having suffered a collapse in 2022, technology companies have been able to recover with mind-boggling numbers: Nvidia with more than 246%, Meta 184% and Tesla with 130%. Each of these values had fallen by more than 50% in 2022. A negative for the US economy but positive for China and the Eurozone was the 2% weakening of the US dollar due to the prospect of rate cuts. 10-year US Treasuries ended 2023 below 4%. So is everything positive for the US economy and above all for its stock market indices? Not exactly everything because geopolitical tensions (war in Ukraine, problematic trafficking in the Red Sea and difficulties in the Chinese real estate market) keep stock market analysts cautious and attentive. But in the end the economic data make optimism prevail. A year ago inflation was 6.5%. Today it is at 3.1%. Consumer spending continues at a good pace, while unemployment does not exceed 3.7%. The crisis of banks linked to Silicon Valley is now over. So why not celebrate the arrival of 2024 with champagne and good wishes? Of course yes but keeping our fingers crossed because critical issues, in the economy, are always around the corner.
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