Stocks hit 2023 high
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The S&P 500 clambered to a new 2023 high on Friday, as the recent rally — driven by expectations that the Fed could cut rates — keeps rolling.
Why it matters: The S&P 500 — the most widely used stock index — is now less than 5% from hitting a new all-time high.
Between the lines: If indeed it does hit a new record, that would confirm that the stocks are in the midst of a full-fledged bull market.
Be smart: Rate cuts — or even the faintest feeling that could be on the way — tend to act as rocket fuel for the stock market.
Yes, but: There's a chance investors could be getting a bit too exuberant.
- According to the market for Fed funds futures, they're now pricing in more than a 50% chance of a rate cut as soon as March.
Bottom line: Officials from the Federal Reserve, including Chair Jerome Powell on Friday, increasingly want that rate cut talk to chill.
