Posted 12/24/2023, 1:51:28 PM
Stocks Surge on Falling Inflation and Hopes of Fed Rate Cuts
- Stocks near record highs as investors bet on falling inflation, Fed rate cuts in 2023, and continued economic growth
- Core inflation slowed to 3.2% year-over-year in November, nearing the Fed's 2% target
- Markets now expect the Fed to start cutting interest rates in 2023 to support growth
- Major indexes like the S&P 500 and Dow are on the verge of new record highs to finish a volatile 2022-2023 period
- Forecasts for 2024 stock returns remain muted compared to historical averages, showing lingering uncertainty about the economic outlook