Markets Retreat as Investors Rethink 2024 Outlook
• Markets stumbled in the first week of 2024 after a hot December, with stocks falling the most in 10 weeks and bonds selling off sharply • Investors may have gotten ahead of themselves in anticipating Fed interest rate cuts and pricing in 6 hikes for 2024 vs the Fed's guidance of 3 • Softer Q4 earnings estimates and disappointing reports from companies like Nike and FedEx likely also fueled the sell-off • Strategists maintain optimism for a no-recession scenario with lower inflation, which would support stocks and bonds • Major tech companies could unveil AI developments at CES this week, supporting the AI trend that drove markets in 2023