he fourth quarter was a fitting end to a remarkable and volatile year in the stock market. Both the financial markets and the economy showed incredible resilience after a devastating 2022, but the U.S. stock market’s strong 2023 was hard-fought, with performance concentrated in the largest, most profitable stocks.
At the start of Q4, the S&P index had retreated from its July high-water mark and was on a downward slide. This halted on Nov. 1 when Federal Reserve Chairman Jerome Powell stepped to the podium with comments that ignited a rally spanning all asset classes and lasting through the end of the year.
In our Q3 market update, we frame why his comments were so impactful, stepping back a few years to review the impact of major market and macroeconomic events and how they’re influencing our outlook for early 2024.
