Stock Market's Plethora of Bullish Indicators Speaks Volumes for 2024

investing.com:

Thanks to the most aggressive rate hike cycle in recent years, the central bank has managed to contain inflation without causing a recession — so far.

Now, in a surprising turn of events, Fed officials have made clear their intentions of implementing a series of cuts in 2024, totaling 75 basis points (more easing than indicated in September).

This comes after Powell, a few weeks ago, declared it was premature to talk about the timing of rate cuts back then.

Meanwhile, they expect further rate cuts by 2025 to 3.6 percent, and Fed funds are discounting 6 rate cuts by the Fed in 2024. The ECB, in line with the Fed's choices, has also decided not to increase tightening.

Thus, interest rates on main refinancing operations, marginal lending operations, and deposits with the ECB will remain unchanged at 4.50 percent, 4.75 percent, and 4.00 percent, respectively.

According to the data shown by Eurosystem experts, eurozone inflation is expected to decline gradually over the next year and then approach the 2 percent target in 2025.

Taking the Dow Jones Industrial Average, we can see how it has reached new all-time highs, and also more stocks have recorded new 52-week highs.

During the bull market that has persisted for over a year, some individuals have spent the entire year searching for reasons to adopt a bearish stance and position themselves against the equity trend.

The question remains: Are you still not convinced? The stock market continues to exhibit a broadly defined bullish trend.

Perhaps it's time to shift our focus to observing the market's actual behavior instead of getting entangled in various considerations.

Even with advanced knowledge of news, predicting market reactions remains challenging due to the myriad