Stocks Hit Records Amid Cautious Optimism, But Risks Remain for 2023 Economy
-
US stocks rallied last week, with the S&P 500 and Dow hitting record highs. Some indicators suggest a positive January bodes well for stocks in 2023.
-
Soft landing optimism is being questioned as rate hikes haven't fully impacted the economy yet. Markets may be pricing in a more dovish Fed than warranted.
-
Risks that could negatively impact markets include higher expenses and tighter margins for companies, inflation surprises, and stronger jobs data prompting more rate hikes.
-
Consumer sentiment rose 13% in January to its highest since July 2021 as inflation eased without sharp job losses.
-
The median home price hit a record $389,800 in 2023, but sales dropped 19% to 1995 levels due to high prices and mortgage rates.