Stock futures were flat in overnight trading Tuesday as the market is poised to kick off the new year following a surprisingly strong 2023 that saw the S&P 500 rally 24%.
Futures on the Dow Jones Industrial Average were up just 23 points. S&P 500 futures gained margainally, while Nasdaq 100 futures traded near the flatline. Markets were closed Monday during New Year’s Day.
The stock market finished 2023 with a bang as the S&P 500 climbed for nine weeks in a row to end the year, notching its best win streak since 2004. Risk assets enjoyed a big relief rally as the economy remained resilient and inflation cooled, while the Federal Reserve signaled an end to rate hikes. The market also endured a regional banking crisis as well as wars in Ukraine and the Middle East.
Technology shares, especially mega-cap stocks, led the 2023 advance with Apple soaring 48%, Microsoft surging nearly 57% and Nvidia skyrocketing 239%. The tech-heavy Nasdaq Composite ended the year up 43.4% for its best year since 2020.
The blue-chip Dow Jones Industrial Average logged a 13.7% gain and notched a new record during 2023.
After a stellar 2023, Wall Street strategists see much lower returns for stocks in the new year, according to the CNBC PRO exclusive Market Strategist Survey. The top 14 strategists from major firms expect that the S&P 500 will end 2024 at 4,881, only about 2.3% above Friday’s close of 4,769.83.
Some are warning about a weaker economy and more tepid consumer spending, which could translate into slower earnings growth for Corporate America.
“The biggest actual risk facing equities isn’t the Fed or [European Central Bank] not cutting as much as anticipated but instead that [earnings per share] suffers a larger than expected decline amid an environment of cooler growth and waning price power,” Adam Crisafulli, founder of Vital Knowledge, said in a note.
