2023 Wrap Up
The stock market ended the year strong. Particularly the last quarter where the S&P 500, Nasdaq, Dow Jones, and small cap stocks all participated in the Santa Claus rally. The Fed announcement about stopping rate increases and the expectation of possible rate cuts by summer fueled the end of year surge.
S&P 500 + 24%
Nasdaq + 43.6%
Dow Jones Indu +13.7%
S&P 600 Small Caps + 16.16%
Below is a look at all of these indexes comparing 2022 to 2023.
S&P 500
The S&P 500 began its climb in October of 2022 and had several starts and stops through 2023. Currently it is testing its all-time high.
Nasdaq
The Nasdaq was the clear winner this year with the dramatic growth in AI technology positively impacting this index.
Dow Jones Industrials
The Dow surpassed its all-time high late in the year after moving sideways most of the year.
S&P 600 Small Cap
Small Caps were probably most affected by the Fed’s interest rate announcement as the cost of borrowing money effects this group more heavily. The index was also running sideways most of the year until it bottomed in November and its returns jumped around 27% from its 2023 low to its 2023 high in only eight weeks.
Considering how much each of these indexes were down in 2022, it’s quite the recovery for 2023.
2022 Annual Returns
S&P 500 -19.45%
Nasdaq -33.10%
Dow Jones -8.78%
S&P 600 -17.42%
The question now is, how long will this rally continue and what does it mean for 2024? In my next blog post in a couple of weeks I will look at what we can expect for 2024 .
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This post is for informational purposes only. It is not intended as investment advice as each person’s financial situation is different. I strongly recommend working with a financial advisor who can deliver current information to you quickly and offer help with sorting through the various investing options. Bret Wilson is a Financial Advisor with Wilson Investment Services, based in Rockwall, Texas.
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