News Summary

• It marked a big psychological shift for investors, said Quincy Krosby, chief global strategist at LPL Financial.“Investors were able to accept that fact that the market would close the year on a higher note,” Krosby said..
• “Above all else, it was broad participation in the market that reinforced and confirmed gains for smaller company stocks were particularly important.”Shares in European markets edged higher Friday, also after a year of gains..
• It gained 27% in 2023, its best year in a decade as the Japanese central bank inched toward ending its longstanding ultra-lax monetary policy after inflation finally exceeded its target of about 2%.The Hang Seng index in Hong Kong ended flat, while the Shanghai Composite index gained 0.7%..
• As a result, investors now expect the Fed to begin cutting rates as early as March.The Fed has signaled three quarter-point cuts to the benchmark rate next year..
• The Russell 2000 index finished 2023 with a 15.1% gain after falling 21.6% in 2022.The rally that started in November helped broaden the gains within the market beyond just the big technology companies..
• Benchmark indexes in France and Germany made double-digit advances, while Britain’s has climbed just under 4%.Asian markets had a mixed session on the last trading day of the year for most markets..