2023 Stock Market: Decisive Moment Fuels Worry, but Year-End Rally in Sight

Investors are anxiously awaiting a key measure of inflation and the Federal Reserve's interest-rate decision this week, which are expected to have a significant impact on the stock market and economy in 2024. Speculation that the Fed will start cutting rates by mid-year has led to a drop in Treasury yields and a renewed interest in riskier investments. The S&P 500 has seen a significant increase in value since late October, with traders flocking to areas of the market that benefit from lower borrowing costs, such as small caps.