January Markets

US stocks set a new record in the last  two days of the month. The S&P 500 Index hit a new high, surpassing its previous record set in January 2022.

Admittedly, the prior peak in January 2022 wasn’t that long ago in terms of days, but a lot happened over that period: US inflation climbed to 9%,  Central banks raised interest rates by over 5% 3. Russia invaded Ukraine, and a new Middle East conflict emerged.

Back then Prominent naysayers warned of “economic hurricanes,” “five years of unemployment above 5%,” and “the worst earnings recession since 2008.” Not surprisingly, consumer confidence in the economy eroded.

Although markets will move in both directions based on many factors, a bright start to a new year is a good thing.

While the lions share of gains are continuing to be driven by the Magnificent 7 Tech giants we are starting to see some broader gains.

Canada shared in the up month but with a more modest 1.7% gain.