{"id":1149,"date":"2023-02-17T09:17:46","date_gmt":"2023-02-17T14:17:46","guid":{"rendered":"https:\/\/embarrdowns.com\/rallying-us-stock-market-a-buying-opportunity-in-2023\/"},"modified":"2023-02-17T09:17:46","modified_gmt":"2023-02-17T14:17:46","slug":"rallying-us-stock-market-a-buying-opportunity-in-2023","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/rallying-us-stock-market-a-buying-opportunity-in-2023\/","title":{"rendered":"Rallying US Stock Market: a Buying Opportunity in 2023"},"content":{"rendered":"

The U.S. stock market has rallied to a strong start in 2023, following a dreary bear market in 2022.[0]<\/a><\/sup> The Nasdaq, S&P 500, Dow Jones Industrial Average and Russell 2000 have all seen increases in the year to date, with the Dow and S&P 500 gaining 2.8% and 7.7%, respectively, while the Nasdaq has seen a 14.3% increase. <\/p>\n

This rally has been fueled by investor optimism that moderating inflation could mean an end to Federal Reserve’s interest rate hikes in the coming months.[1]<\/a><\/sup> Due to lower borrowing costs, lower interest rates tend to spur investor interest in high-risk assets, such as growth stocks.[2]<\/a><\/sup><\/p>\n

However, the stock market rally of 2023 is losing steam, with the Nasdaq and S&P 500 notching their worst weekly runs in nearly 2 months, as investors prepare for Tuesday’s inflation print.[2]<\/a><\/sup> A strong January jobs report and hawkish comments from Fed Chair Jerome Powell have dampened hopes that the Fed could ease up on its tight monetary policy, likely contributing to the slide in stocks.[2]<\/a><\/sup><\/p>\n

Tesla is leading the pack with a 68.3% gain, as investors warm again to tech stocks, while Nvidia has gained 52.9%.[3]<\/a><\/sup> Warner[3]<\/a><\/sup> Discovery, Royal Caribbean and Meta Platforms have also gained 51.6%, 48.8% and 47.9%, respectively.[3]<\/a><\/sup><\/p>\n

The four biggest yearly gains for the S&P 500 since 1950 happened after the stock market experienced a losing year.[4]<\/a><\/sup> So if the S&P 500 bounces back by 25% or more this year, the rebound would fit well within historical trends.[4]<\/a><\/sup> Investors should treat the current situation as a buying opportunity.[5]<\/a><\/sup> The S&P 500 is still 14% off its high, but it will recover at some point.[5]<\/a><\/sup><\/p>\n

0. <\/span>“Why 2023 Will Be the Year of the Stock Picker” Zacks Investment Research, 13 Feb. 2023, https:\/\/www.zacks.com\/commentary\/2053502\/why-2023-will-be-the-year-of-the-stock-picker<\/a><\/a><\/p>\n

1. <\/span>“The Stock Market Is Rallying. Will It Last?” Money, 8 Feb. 2023, https:\/\/money.com\/will-stock-market-rally-last\/<\/a><\/a><\/p>\n

2. <\/span>“US stocks notch worst weekly run in 2 months, showing signs of fatigue” Markets Insider, 13 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-rally-fizzling-out-nasdaq-sp500-inflation-2023-2<\/a><\/a><\/p>\n

3. <\/span>“10 best-performing stocks on the S&P 500 and what could be driving them” Markets Insider, 10 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stocks-best-performers-sp500-us-rally-drive-surprise-gains-2023-2<\/a><\/a><\/p>\n

4. <\/span>“Why History Says 2023 Will Be A Banner Year For Stocks” Benzinga, 8 Feb. 2023, https:\/\/www.benzinga.com\/trading-ideas\/long-ideas\/23\/02\/30819221\/why-history-says-2023-will-be-a-banner-year-for-stocks<\/a><\/a><\/p>\n

5. <\/span>“History Says the S&P 500 Could Soar in 2023 — 2 Perfect Stocks to Buy Before the Rebound” The Motley Fool, 10 Feb. 2023, https:\/\/www.fool.com\/investing\/2023\/02\/10\/sp-500-could-soar-in-2023-2-perfect-stocks-to-buy\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. stock market has rallied to a strong start in 2023, following a dreary bear market in 2022.[0]<\/a><\/sup> The Nasdaq, S&P 500, Dow Jones Industrial Average and Russell 2000 have all seen increases in the year to date, with the Dow and S&P 500 gaining 2.8% and 7.7%, respectively, while the Nasdaq has seen a 14.3% increase. <\/p>\n

This rally has been fueled by investor optimism that moderating inflation could mean an end to Federal Reserve’s interest rate hikes in the coming months.[1]<\/a><\/sup> Due to lower borrowing costs, lower interest rates tend to spur investor interest in high-risk assets, such as growth stocks.[2]<\/a><\/sup><\/p>\n

However, the stock market rally of 2023 is losing steam, with the Nasdaq and S&P 500 notching their worst weekly runs in nearly 2 months, as investors prepare for Tuesday’s inflation print.[2]<\/a><\/sup> A strong January jobs report and hawkish comments from Fed Chair Jerome Powell have dampened hopes that the Fed could ease up on its tight monetary policy, likely contributing to the slide in stocks.[2]<\/a><\/sup><\/p>\n

Tesla is leading the pack with a 68.3% gain, as investors warm again to tech stocks, while Nvidia has gained 52.9%.[3]<\/a><\/sup> Warner[3]<\/a><\/sup> Discovery, Royal Caribbean and Meta Platforms have also gained 51.6%, 48.8% and 47.9%, respectively.[3]<\/a><\/sup><\/p>\n

The four biggest yearly gains for the S&P 500 since 1950 happened after the stock market experienced a losing year.[4]<\/a><\/sup> So if the S&P 500 bounces back by 25% or more this year, the rebound would fit well within historical trends.[4]<\/a><\/sup> Investors should treat the current situation as a buying opportunity.[5]<\/a><\/sup> The S&P 500 is still 14% off its high, but it will recover at some point.[5]<\/a><\/sup><\/p>\n

0. <\/span>“Why 2023 Will Be the Year of the Stock Picker” Zacks Investment Research, 13 Feb. 2023, https:\/\/www.zacks.com\/commentary\/2053502\/why-2023-will-be-the-year-of-the-stock-picker<\/a><\/a><\/p>\n

1. <\/span>“The Stock Market Is Rallying. Will It Last?” Money, 8 Feb. 2023, https:\/\/money.com\/will-stock-market-rally-last\/<\/a><\/a><\/p>\n

2. <\/span>“US stocks notch worst weekly run in 2 months, showing signs of fatigue” Markets Insider, 13 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-rally-fizzling-out-nasdaq-sp500-inflation-2023-2<\/a><\/a><\/p>\n

3. <\/span>“10 best-performing stocks on the S&P 500 and what could be driving them” Markets Insider, 10 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stocks-best-performers-sp500-us-rally-drive-surprise-gains-2023-2<\/a><\/a><\/p>\n

4. <\/span>“Why History Says 2023 Will Be A Banner Year For Stocks” Benzinga, 8 Feb. 2023, https:\/\/www.benzinga.com\/trading-ideas\/long-ideas\/23\/02\/30819221\/why-history-says-2023-will-be-a-banner-year-for-stocks<\/a><\/a><\/p>\n

5. <\/span>“History Says the S&P 500 Could Soar in 2023 — 2 Perfect Stocks to Buy Before the Rebound” The Motley Fool, 10 Feb. 2023, https:\/\/www.fool.com\/investing\/2023\/02\/10\/sp-500-could-soar-in-2023-2-perfect-stocks-to-buy\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1148,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1149"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1149"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1148"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}