The stock market is set to end 2023 on a high note with the S&P 500 futures rising by 0.13% and Dow Jones Industrial Average futures ticking up by 0.13%. Meanwhile, Nasdaq-100 futures surged by 0.16%. An exclamation point on a rally with a growing strength in the past six months, the S&P 500 enters the final trading day, less than 0.5% from a new record high.
The S&P 500 has delivered a remarkable performance in 2023, with an impressive gain of 24.6%. The Dow Jones Industrial Average has also soared with a rise of 13.8%. However, the Nasdaq Composite has been the biggest winner this year, on track for its most significant annual increase since 2003, having surged by 44.2%.
Artificial intelligence (AI) was among the top drivers of stock performance in 2023, igniting significant gains for the “Magnificent 7” stocks, including Nvidia and Microsoft. The inclusion of these tech giants buoyed the indexes, but the average stock struggled amid escalating interest rates. Consequently, this dichotomy fueled the Nasdaq’s outperformance and reinforced its technology-heavy composition.
Despite this clear divide, the US stock market as a whole has persevered amidst a year of uncertainty and challenges. The gains enabled investors to reap substantial profits and achieve their investment objectives.
The pandemic continued to cast a shadow over the global business landscape, but with the US economy growing significantly beyond expectations, the stock market managed to eke out new gains amid this ongoing uncertainty. Investors have been betting on this longevity, with some analysts predicting that these gains will extend well into 2024, providing ample opportunities for engagement.
