This is a new installment in an ongoing series where Marc Bautis and colleagues comment on hot topics in the financial industry. This week, Kayla Waller, Financial Planner, fills us in.
December 2023 Market Summary
Stocks rallied into the end of the year. The Dow Jones Industrial Average rose 4.9%, the S&P 500 advanced 4.5%, and the NASDAQ jumped 5.6%.
Small-caps had a particularly standout month, as the Russell 2000 rose 12.2% in December. For the year, the Dow had a 16.2% gain, the S&P 500 added 26.3%, and the NASDAQ blazed higher by 44.6%.
All eleven sectors posted a positive December. Real Estate led the way with an 8.8% increase, followed by a 7.1% advance in Industrials and 6.1% in Consumer Discretionary.
Technology, Communication Services, and Consumer Discretionary were the best-performing sectors in 2023, while three sectors recorded a down year: Energy, Consumer Staples, and Utilities.
The US inflation rate continued its YoY slide, falling to 3.14% in November which is the lowest print in 5 months. Core Inflation slowed to 4.01%, its lowest YoY level since September 2021. The monthly US Consumer Price Index inched 0.1% higher, and monthly US Personal Spending grew a quarter of a percent in the same month.
The Federal Reserve held its key Fed Funds Rate at 5.50% at its December 13th, 2023 meeting, marking the Fed’s third consecutive meeting in which rates were left unchanged.
US New Single-Family Home Sales plummeted 12.2% MoM in November while US Existing Home Sales inched 0.8% higher MoM. However, the Median Sales Price of Existing Homes fell for the fifth straight month to $387,600 in November. The median price of existing homes is 6.33% below its all-time high.
Mortgage rates continued their cooldown into December; the 15-year Mortgage Rate ended the year at 5.93%, below 6% for the first time since May. The 30-year closed out 2023 at 6.61%, falling below 7% for the first time since mid-August.
Related: 3 Tips For Negotiating Your Next Mortgage
Treasury yields fell further in December as investors continued to pile into equities. Longer-term bonds saw larger declines, as yields on the 20-year and 30-year fell by 0.52% and 0.51%. The 5-year and 10-year both fell below 4%. However, bond ETFs experienced price appreciation in December as a result of falling yields.
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
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