Wall Street ended 2022 with the biggest annual decline since 2008. Following last year's dismal performance, stocks have had an encouraging start to 2023, with the Nasdaq Composite and S&P 500 gaining about 11% and 6%, respectively, in the past month. Moreover, January turned out to be Nasdaq’s best month since July.
Stocks rallied after the Federal Reserve raised interest rates by a quarter point at the year's first Federal Open Market Committee (FOMC) meeting, marking the smallest hike since March last year. While Fed Chair Jerome Powell hinted at a couple more increases, he also said, "The disinflationary process has begun. It has begun in the goods sector, which is about 25% of the economy."
