The Consumer Price Index (CPI) for December increased 6.5% year-over-year while decreasing 0.1% for the month. The cooling inflation numbers have raised optimism. Additionally, according to the University of Michigan Surveys of Consumers, the one-year inflation expectation fell to a preliminary reading of 4.0% in January, down from 4.4% in December 2022.
Also, the overall Consumer Sentiment Index jumped to 64.6, up 8.2% from December's value of 59.7, indicating increased consumer confidence. Furthermore, according to Goldman Sachs' 2023 forecast, despite lingering headwinds, the S&P 500 is expected to return between 9-12% this year.
