Valley-area stocks had a modest year in 2023, with a few exceptions. Glendale-based [company name] saw share prices up 46% at the end of the year. Biotech companies like Amgen Inc. and Simulations Plus Inc. also had a good year. However, MannKind Corp., Atara Biotherapeutics Inc., Arcutis Biotherapeutics Inc., and Arrowhead Pharmaceuticals Inc. did not perform well. Walt Disney Co. saw a 4.3% gain on the year. Tech companies like LegalZoom and Snap had significant gains, while NetSol Technologies Inc. was down 24%. Semiconductor firm Trio-Tech International had a successful year, while Semtech Corp. saw its price fall. Tutor Perini Corp., a construction company, saw its price grow by nearly 21%. Analysts are hopeful for 2024, with expectations of fading inflation, potential rate cuts by the Fed, and strong corporate earnings and growth.
Wall Street concluded 2023 with record highs, despite economic headwinds. The S&P 500 index recorded its ninth consecutive week of gains and soared 24% over the year [dd646463]. The rally was fueled by the artificial intelligence boom and investor confidence [dd646463]. Tech stocks like Nvidia Corp and Advanced Micro Devices Inc led the market, while ride-sharing platforms Uber Technologies and Lyft saw a dip in performance [dd646463]. The U.S. 10-year Treasury yield ended the year near its starting point, and there were expectations of rate cuts in 2024 [dd646463]. Former Treasury Secretary Lawrence Summers warned of underestimating inflation risks [dd646463]. The financial market's journey in 2023 highlighted resilience and growth, driven by technological advancements and shifting economic policies [dd646463].
The stock market in 2023 defied expectations with one of the biggest years for stock market performance in the past decade. The US Market Index was up 26.4%, with technology stocks surging 59.1% for their best performance since 2009 [8fcbd4e3]. The rally was driven by mega-cap technology stocks and other growth companies, particularly semiconductor chip designer Nvidia [8fcbd4e3]. Bonds also made a comeback, with the catalyst being the shift in Fed policy from interest rate increases to cuts for 2024 [8fcbd4e3]. The year saw strong performance in sectors such as technology, communications services, and large-growth stocks, while utilities stocks stumbled [8fcbd4e3]. Dividend stocks lagged behind the broader market [8fcbd4e3]. The bond market experienced volatility, with the yield on the US Treasury 10-year note reaching a 17-year high near 5% [8fcbd4e3]. The year also saw a reversal of fortune for sectors, with technology and communications services leading the gains after being the worst-performing sectors in 2022 [8fcbd4e3]. Growth stocks outperformed value stocks, and small-company stocks staged a comeback in the final months of the year [8fcbd4e3]. The currency market saw strength in the US dollar, particularly against the Japanese yen [8fcbd4e3]. In commodities, oil prices were driven by slowing demand, while gold prices reached a record high [8fcbd4e3]. Cryptocurrencies also made a comeback in 2023 [8fcbd4e3]. Overall, the year was marked by strong stock market performance, a shift in Fed policy, sector rotation, and volatility in the bond market [8fcbd4e3].
Looking ahead to 2024, there are concerns about whether stocks can surpass the highs of 2022. The stock market in 2023 recouped almost all the losses it made in 2022, with a strong U.S. economy dispelling recession fears and inflation turning out to be mostly transitory [8fcbd4e3]. However, high valuations imply lower long-term returns, and nothing in the market looks cheap [8fcbd4e3]. It remains to be seen how the market will perform in the coming year, with factors such as interest rate cuts and inflation risks potentially impacting investor sentiment and market dynamics [dd646463] [8fcbd4e3]. The stock market rebounded in 2023 and is expected to continue rising in 2024. Tom Lee of Fundstrat predicts that the S&P 500 index will rise an additional 9% to 5,200 in 2024, with a scenario in which it could jump by 30%. Intel (INTC) and CrowdStrike (CRWD) are two stocks recommended for investors. Intel's stock got a boost in 2023 due to a broader rally in semiconductor stocks, and it is expected to benefit from growth trends in the industry. CrowdStrike is expected to maintain its impressive performance in the cybersecurity market, which is projected to grow. Both stocks are considered to have good growth potential.
Wolfspeed, Inc. (NYSE:WOLF) stock dipped due to weak sales of electric vehicles (EVs) leading to lower demand for the company's specialized silicon carbide (SIC) chips used in EVs. The one-month return of Wolfspeed, Inc. (NYSE:WOLF) was -14.02%, and its shares lost 59.28% of their value over the last 52 weeks. On June 25, 2024, Wolfspeed, Inc. (NYSE:WOLF) stock closed at $22.08 per share with a market capitalization of $2.779 billion. Carillon Chartwell Small Cap Growth Fund, an affiliate of Chartwell Investment Partners, LLC, highlighted Wolfspeed, Inc. (NYSE:WOLF) in its first quarter 2024 investor letter. The U.S. economy showed signs of moderate growth in the first quarter, with indications of an upturn towards the end of the period. The Federal Reserve sees the economic performance as a 'Goldilocks' scenario, balanced, with slowing demand, moderate wage pressure, and strong job growth. Wolfspeed, Inc. (NYSE:WOLF) is not on the list of 31 Most Popular Stocks Among Hedge Funds. 33 hedge fund portfolios held Wolfspeed, Inc. (NYSE:WOLF) at the end of the first quarter. Wolfspeed, Inc. (NYSE:WOLF) reported $201 million in revenue for the quarter, marking a 4% decrease from the previous quarter and a 4% increase year over year. [a9f0de9f]