From Dow Jones & Company:

Stock investors are off to a rocky start in 2024, as expectations around Federal Reserve interest-rate cuts shift. All three major U.S. stock indexes snapped a winning streak after strong December job gains reduced the chances of a March rate cut. The “January effect” – a theory that stocks rise more in January than any other month – may be put to the test this year, as traders eye inflation and the potential for six or seven cuts. The Fed is uncertain about their rate cut forecasts, with markets expecting interest rates to decline heavily in the coming months. This is causing market concerns and could impact US stock indexes in 2024.

With a 3.1% inflation rate in November, the Fed is facing a decision on the economy and potential rates cuts. Fortcoming economic data could provide the Fed with the facts necessary to decide on the future course of action. Traders are watching prices and yields very closely as they make choices on investments in the coming weeks.



Read more: Why stock-market investors will remain at mercy of shifting rate-cut expectations