This week, the stock market soared to new heights as the S&P 500 and Dow Jones Industrial Average hit record levels, while the Nasdaq Composite bounced back into rally mode. The standout performer was NVIDIA (NVDA), whose stellar quarterly report reignited enthusiasm for AI-related, growth, and semiconductor stocks.

Last week, the stock market experienced a positive trend, largely influenced by the following factors.

During the past week, the stock and bond markets experienced quite a rollercoaster ride. Here are the specific factors that caused all the commotion and what might jolt the markets in the upcoming week.

The financial markets during the past week were influenced by several specific factors. Stock markets experienced a rise, supported by positive earnings reports and economic data reflecting continued disinflation. The advance estimate for the fourth quarter’s economic growth exceeded estimates, and the Federal Reserve’s preferred inflation measure, Core PCE, slowed more than anticipated. The consensus view was that the markets were pricing a soft economic landing, with inflation expected to fall to 2%.

This past week, several factors affected the financial markets, including geopolitical fragmentation, monetary policy decisions, interest rates, stock market performance, consumer sentiment, and inflation. In the upcoming week, these factors may continue to influence the markets, along with central bank policy decisions, economic data releases, and corporate earnings announcements.

Last week, the stock market was influenced by various factors, including economic data, earnings reports, and inflation concerns. The S&P 500 closed at a new all-time high on Friday, with the tech-heavy Nasdaq leading the way, gaining more than 2%.

The market’s exuberant rally at the end of 2023 left stocks overvalued, with investors emboldened by the Federal Reserve’s December indication that rate cuts were possible.

Over the week, the stock market saw a shift in sentiment following nine consecutive weeks of gains that closed out the previous year. The primary factors influencing the market included profit-taking in mega-cap stocks, concerns about rising rates, and specific stock-related news.

During the week of December 26 to December 29, 2023, several specific events tied to financial, economic, and political issues influenced the stock market.

Over the week spanning December 18 to December 22, the stock market continued its impressive rally, marking its eighth consecutive week of gains. This upward trend was driven by a combination of declining market rates, a positive economic forecast, a widespread fear among investors of missing out on additional increases, and a rise in speculative trading amid a relative absence of selling pressure. Notably, the Russell 2000 index outperformed with a 2.5% increase, reflecting these broader market trends.