If You Had Invested $1,000 In SPY When Fed Began Pausing Rates In September, Here's How Much You'd Have Now
Portfolio Pulse from Shanthi Rexaline
The S&P 500 and Dow Industrials have shown strong performance in 2023, with gains of about 23% and record-breaking sessions, respectively. Tech stocks, particularly mega-caps, have led the rally, with the Nasdaq 100 Index surging over 51%. The SPDR S&P 500 ETF Trust (SPY) has increased by approximately 25% year-to-date. The market's buoyancy is attributed to expectations of the Federal Reserve pausing rate hikes, which began in September 2023, and potential rate cuts in 2024. A $1,000 investment in SPY before the Fed paused rate hikes would now be worth $1,065, a 6.5% return over three months.
December 18, 2023 | 8:17 am
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POSITIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) has gained approximately 25% year-to-date, reflecting the broader market's positive response to the Fed's pause in rate hikes. An investment in SPY before the pause would have yielded a 6.5% return in three months.
The positive performance of SPY is directly linked to the broader market's upswing due to the Fed's rate hike pause. The historical data provided suggests a strong correlation between Fed policy and market performance, indicating a likely continuation of the positive trend in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100