The U.S. economy grew at an annual rate of 2.9% in the third quarter of fiscal 2022, despite high borrowing costs and chronic inflation. Moreover, the November jobs report also exceeded expectations, with nonfarm payrolls rising by 263,000 against Dow Jones’ estimate of 200,000. Plentiful job openings and low unemployment show that the economy is slow-moving but resilient.
“At this point, the stock market is assuming that we won’t go into recession or, if we do, that it will be mild and that the Fed will likely cut interest rates in the second half of 2023,” Sam Stovall, the chief investment strategist for CFRA Research, said.
