📈2023 Performance of Major Stock Indices
[Issue #19] It's boxing day! And today, we will be looking at the performance of major stock indices around from around the globe. I am sure you'd be surprise by few! Let dive right in ⏬
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Before we begin, I would like to wish you all a merry Christmas and happy holidays!🎄
It's the end of the year, and it's time for a few wrap-ups.
2023 was quite an unpredictable year for the global economy. With rising interest rates and wars in Europe and Central Asia, it was difficult for just about everyone to gauge where the world economy would stand by the end of 2023.
Well, we have some answers now. At least from the perspective of stock markets around the world.
In collaboration with InvestyWise, I would like to bring you the performance of major stock indices from around the globe.
The year 2023 has been a remarkable one for global stock markets, with many major indices posting strong gains.
The MOEX Index of Russia led the way with a return of 41.4% year-to-date (YTD) as of December 14, 2023. The Nikkei 225 Index of Japan was close behind with a YTD return of 26.2%.
Other notable performers included the S&P 500 Index of the United States (20.9%), the DAX Index of Germany (20.6%), and the CAC 40 Index of France (16.5%).
The Nifty 50 Index of India and the KOSPI Index of South Korea also posted solid gains, with YTD returns of 15.0% and 12.3%, respectively.
The FTSE 100 Index of the United Kingdom was the only major index to underperform in 2023, with a YTD return of just 1.2%.
The Shanghai Stock Exchange Composite Index of China and the Hang Seng Index of Hong Kong also posted negative returns for the year, with YTD declines of 4.2% and 18.0%, respectively.
While I am not a certified financial analyst, a Business Insider article attempted to shed some light on the possible explanations for the good stock market performance. Here are the key factors:
Big Tech earnings: Tech stocks have been the main drivers of the market this year, especially the "Magnificent Seven" tech companies.
In January, Netflix's earnings report boosted the Nasdaq index by 2.7%.
In April, Meta's quarterly results pushed its stock price up 14%.
In May, Apple's earnings report led to a 4.7% gain in its stock price.
The "Magnificent Seven" tech companies accounted for 34% of the S&P 500 index in September.
Interest rates: Rising bond yields weighed on markets in 2022 and early 2023, but hints that they could be headed back down have given stocks a boost.
On March 3, stocks rallied when the 10-year Treasury yield ticked downward after touching 4%.
Fed policy: The Fed's decision to pause on rate hikes has also led to a rally in stocks.
Very recently the S&P 500 jumped 1.9% after the Fed announced its decision to pause on rates.
Fears of a recession: The market has reacted strongly to news that could indicate a slowdown in the economy.
The biggest market jump in 2023 followed the December jobs report that showed slower-than-expected wage inflation.
In March, stocks rebounded on news that deposits at Silicon Valley Bank and Signature Bank were guaranteed.
While these are some factors, I am sure there are many more explanations. Nevertheless, if your investments in 2023 ended in the green, then congratulations; and if they did not, then you get another shot in 2024.
… and that’s our Insight Scoop for this week!
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Our this week’s post is in partnership with InvestyWise.com
InvestyWise is an India-based leading finance blog that provides clear, concise, and accessible information on personal finance topics, including investing, saving, debt management, and retirement planning.
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