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The stock ended the last session of the year lower, but posted significant gains for the year.
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The S&P 500 stopped short of hitting its all-time high, but rose 24% in 2023.
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Traders are betting the Fed will cut rates as early as the first quarter of 2024.
The U.S. stock market fell, and the S&P 500 index ended its last session without hitting a new all-time high.
However, on an annual basis, the stock market has performed admirably this year.
The S&P 500 index rose 24%, driven by resilient consumer spending, an economy that resisted calls for a recession, and stable corporate profits. The Dow Jones Industrial Average also rose, and the Nasdaq rode the wave of enthusiasm for artificial intelligence to end the year up 44%.
The stock price was volatile, but rose steadily throughout the year. Some of the strongest gains came at the end of the year, as traders began betting on the idea that the Federal Reserve was almost done raising interest rates and was moving toward monetary easing in 2024.
Following a series of encouraging inflation reports showing slowing price increases, Fed Chairman Jerome Powell gave a long-awaited nod to a change in policy at his December meeting. Officials have suggested there could be three cuts next year, but many large companies expect more cuts.
On Friday, the 10-year Treasury yield rose 1 basis point to 3.866%. It peaked in October, reaching 5% for the first time since 2007.
The market will be closed on Monday for the New Year holidays and will reopen on Tuesday.
Here are the U.S. indices as of Friday’s close at 4 p.m.
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
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West Texas Intermediate crude oil fell 0.5% to $71.38 a barrel. Brent crude oil, the international benchmark, fell 0.1% to $77.08 per barrel.
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Gold fell 0.4% to $2,075 an ounce.
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The yield on the 10-year U.S. Treasury rose 1 basis point to 3.866%.
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Bitcoin fell 1.25% to $42,006.
Read the original article on Business Insider
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