Dow Jones Poised for Gains in 2023-2024 Once Interest Rate Hikes End, History Shows
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The Dow Jones Industrial Average recently notched its longest weekly winning streak since late 2021, signaling positive momentum in the stock market.
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Historical data shows the Dow Jones tends to increase around 18% in the 12 months following the end of a Fed interest rate hike cycle.
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Similarly, the S&P 500 has returned over 16%, on average, in the 12 months after rate hike cycles end.
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If this cycle follows historical trends, the Dow and S&P 500 could climb over 15% by July 2024.
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Investors hoping to benefit from potential gains may want to buy index funds tracking the Dow Jones or S&P 500.