While skeptics watched from the sidelines, the stock market delivered an extraordinary performance in 2023, with the S&P 500 surging over 26%, the Nasdaq rocketing more than 43%, and the Dow hitting its first close above 38,000 in early 2024.
Key Takeaways
- The S&P 500 index achieved a total return of 26.29% in 2023, including dividends, marking one of its strongest years since 2019.
- The Dow Jones Industrial Average (DJIA) closed at 37,689.54 on December 29, 2023, with a yearly gain of 13.70%.
- NASDAQ Composite Index rose 43.42% in 2023, driven by tech sector rally, reaching 15,011.35 by year-end.
- Average daily trading volume on NYSE reached 1.2 billion shares in 2023.
- NASDAQ average daily volume hit 4.5 billion shares in 2023.
- Total US equity trading volume exceeded 1.5 trillion shares in 2023.
- S&P 500 forward P/E ratio stood at 20.5x as of end-2023.
- Average P/E for S&P 500 companies was 22.4x trailing twelve months end-2023.
- Tech sector average P/E reached 29.8x in 2023.
- 42% of US households owned stock directly or indirectly in 2022.
- Average age of US stock investor is 51 years as of 2023 survey.
- Women comprised 52% of Robinhood users by end-2023.
- US GDP growth of 2.5% in 2023 positively correlated with S&P 500 returns.
- Fed funds rate hikes from 0.25% to 5.25-5.50% in 2023 led to 10% market dip mid-year.
- Unemployment rate averaged 3.6% in 2023, near historic lows boosting equities.
The stock market surged in 2023, driven by strong tech gains and a resilient economy.
Company Valuations
1S&P 500 forward P/E ratio stood at 20.5x as of end-2023.
Verified2Average P/E for S&P 500 companies was 22.4x trailing twelve months end-2023.
Verified3Tech sector average P/E reached 29.8x in 2023.
Verified4Financials sector P/E averaged 12.6x, lowest among S&P sectors in 2023.
Directional5Nvidia (NVDA) P/E ratio surged to 70x forward earnings end-2023.
Single source6Berkshire Hathaway (BRK.A) traded at 1.4x book value end-2023.
Verified7Median P/S ratio for Russell 3000 was 2.1x end-2023.
Verified8Consumer staples P/B ratio averaged 3.8x in 2023.
Verified9Energy sector EV/EBITDA multiple fell to 5.2x end-2023.
Directional10Apple market cap hit $3.0 trillion intraday in December 2023.
Single source11Microsoft P/E at 35.2x trailing end-2023.
Verified12Amazon EV/Sales ratio 2.9x end-2023.
Verified13JPMorgan Chase P/B 1.7x end-2023.
Verified14Average dividend yield for S&P 500 Dividend Aristocrats was 2.5% in 2023.
Directional15Healthcare sector PEG ratio averaged 1.8x end-2023.
Single source16Utilities P/E 18.1x, highest defensive sector multiple 2023.
Verified17Magnificent 7 stocks traded at average 40x forward P/E end-2023.
Verified18Small-cap Russell 2000 P/E 15.2x end-2023.
Verified19Industrials EV/EBITDA 11.4x average 2023.
Directional20Communication services sector P/S 2.8x end-2023.
Single source21Real estate REITs FFOPO yield 4.2% average 2023.
Verified22Materials sector P/B 2.3x end-2023.
Verified23Consumer discretionary PEG 1.5x 2023 average.
Verified24Overall market cap-to-GDP ratio (Buffett Indicator) at 190% end-2023.
Directional25Goldman Sachs 400 US stocks median P/E 17.8x end-2023.
Single source2658% of S&P 500 stocks traded above 200-day moving average end-2023.
VerifiedCompany Valuations Interpretation
The market in late 2023 presents a classic tale of haves and have-nots, where the future of AI is priced to perfection at a staggering 70 times earnings for Nvidia, while the boring business of making money, like at JPMorgan, trades near the value of its tangible parts, and the entire spectacle rests on a Buffett Indicator screaming that the total market is worth nearly twice the country's annual output.
Economic Correlations
1US GDP growth of 2.5% in 2023 positively correlated with S&P 500 returns.
Verified2Fed funds rate hikes from 0.25% to 5.25-5.50% in 2023 led to 10% market dip mid-year.
Verified3Unemployment rate averaged 3.6% in 2023, near historic lows boosting equities.
Verified4CPI inflation fell from 6.5% to 3.1% in 2023, aiding stock recovery.
Directional5Corporate earnings growth for S&P 500 was 8.2% in 2023.
Single source6US 10-year Treasury yield rose from 3.88% to 3.88% avg 2023, pressuring valuations.
Verified7Consumer spending grew 2.7% real terms 2023, driving 60% of GDP.
Verified8ISM Manufacturing PMI averaged 47.8 in 2023, contractionary but stabilized.
Verified9Housing starts declined 6.5% to 1.41 million units in 2023.
Directional10Nonfarm payrolls added 2.7 million jobs in 2023.
Single source11Productivity growth 1.3% in 2023 supported profit margins.
Verified12Oil prices averaged $77.58 per barrel WTI in 2023.
Verified13US-China trade deficit narrowed to $279 billion in 2023.
Verified14Corporate debt-to-GDP ratio 50% in 2023.
Directional15Household net worth rose 10% to $156 trillion end-2023.
Single source16Budget deficit 6.3% of GDP in FY2023.
Verified17Capacity utilization 78.4% average 2023.
Verified18Retail sales up 3.8% nominal 2023.
Verified19Industrial production grew 1.1% in 2023.
Directional20Personal savings rate averaged 4.6% in 2023.
Single source21Wage growth 4.1% YoY average 2023.
Verified22Core PCE inflation 2.9% end-2023.
Verified23Business investment rose 2.2% real 2023.
Verified24Trade balance deficit $773 billion in 2023.
Directional25M2 money supply grew 0.2% in 2023 after contraction.
Single source26Leading Economic Index declined 1.8% in 2023.
Verified27S&P 500 EPS growth forecast 12% for 2024 tied to soft landing.
Verified28Inverted yield curve persisted 80% of 2023, signaling recession risk.
VerifiedEconomic Correlations Interpretation
The market in 2023 was a resilient beast, grumbling through the Fed's harsh medicine and a housing hiccup but ultimately fattened by a strong job market, falling inflation, and the stubborn American consumer who kept spending even while saving less.
Investor Demographics
142% of US households owned stock directly or indirectly in 2022.
Verified2Average age of US stock investor is 51 years as of 2023 survey.
Verified3Women comprised 52% of Robinhood users by end-2023.
Verified4Millennials (born 1981-1996) hold 32% of US stock market wealth in 2023.
Directional515% of US adults started investing in stocks post-2020 pandemic.
Single source6Baby Boomers control 52% of US stock market assets in 2023.
Verified789 million Americans own stocks, up 10% since 2020.
Verified8Hispanic Americans stock ownership rate rose to 28% in 2023.
Verified9Retail investors represent 25% of daily US equity trading volume in 2023.
Directional10Average retail investor portfolio size $25,000 in 2023.
Single source1161% of Gen Z own stocks via apps like Robinhood in 2023.
Verified12Institutional investors hold 80% of S&P 500 market cap in 2023.
Verified13Passive index funds own 47% of US large-cap stocks end-2023.
Verified14Foreign investors hold 18% of US equities as of 2023.
Directional15Self-directed brokerage accounts grew 15% to 70 million in 2023.
Single source1634% of stock owners are college graduates, per 2023 Gallup.
Verified17High-net-worth individuals (>$1M) allocate 55% to equities in 2023.
Verified18Women stock owners increased to 56% of total in 2023 surveys.
Verified19Average investor age at Vanguard is 51, median account $250k 2023.
Directional20Black Americans stock ownership at 34% in 2023, up from 27%.
Single source2172% of investors check portfolios daily/weekly via apps 2023.
Verified22ESG-focused retail investors grew 25% to 12 million in 2023.
Verified2365% of under-30 investors prefer individual stocks over funds.
Verified24Pension funds allocate 60% to equities globally in 2023.
Directional25Family offices average 40% equity allocation in 2023.
Single source26Crypto-owning investors 18% also hold stocks heavily in 2023.
VerifiedInvestor Demographics Interpretation
The stock market is no longer a country club for the old and wealthy, but a digital town square where everyone from the anxious millennials building wealth and the Gen Z day traders to the still-dominant Boomers holding the deed are all checking their phones far too often, proving that while ownership is democratizing, the real power—and the average gray hair—still resides with the institutions and the generation that remembers life before the internet.
Market Indices
1The S&P 500 index achieved a total return of 26.29% in 2023, including dividends, marking one of its strongest years since 2019.
Verified2The Dow Jones Industrial Average (DJIA) closed at 37,689.54 on December 29, 2023, with a yearly gain of 13.70%.
Verified3NASDAQ Composite Index rose 43.42% in 2023, driven by tech sector rally, reaching 15,011.35 by year-end.
Verified4Russell 2000 small-cap index returned 16.93% in 2023 after a 20.44% decline in 2022.
Directional5S&P 500's price-to-earnings ratio averaged 19.2x in 2023, compared to long-term average of 15.9x.
Single source6From 1928 to 2023, S&P 500 average annual return including dividends was 9.9% nominal, 6.9% real after inflation.
Verified7In 2022, S&P 500 declined 19.44%, worst year since 2008 financial crisis.
Verified8DJIA hit all-time high of 40,003.60 on May 16, 2024.
Verified9NASDAQ 100 index surged 55.1% in 2023, outperforming broader market.
Directional10FTSE 100 index returned 3.76% in 2023 in GBP terms.
Single source11Nikkei 225 rose 28.25% in 2023, best year since 2013.
Verified12Shanghai Composite Index fell 3.70% in 2023 amid economic slowdown.
Verified13S&P 500 dividend yield averaged 1.47% in 2023.
Verified14VIX index averaged 16.9 in 2023, indicating moderate volatility.
Directional15MSCI World Index returned 22.8% in 2023 in USD terms.
Single source16S&P 500 reached 50 different all-time highs in 2023.
Verified17DJIA traded above 38,000 for the first time on January 19, 2024.
Verified18NASDAQ Composite hit record close of 16,299.00 on December 14, 2023.
Verified19S&P MidCap 400 returned 16.47% in 2023.
Directional20Wilshire 5000 total market index up 22.6% in 2023.
Single source21S&P 500 equal-weight index outperformed cap-weighted by 5% in 2023.
Verified22DJIA yield averaged 2.1% in 2023.
Verified23S&P 500 P/E ratio hit 24.8x peak in July 2023.
Verified24NASDAQ P/E averaged 28.5x in 2023.
Directional25S&P 500 total market cap reached $42.1 trillion by end-2023.
Single source26DJIA components' average P/E was 18.2x in 2023.
Verified27S&P 500 forward P/E was 19.8x at end-2023.
Verified28Russell 1000 growth index returned 31.05% in 2023.
Verified29S&P 500 value index lagged with 22.1% return in 2023.
Directional30NYSE Composite Index up 12.5% in 2023.
Single sourceMarket Indices Interpretation
After a sobering 2022 bear market nap, 2023 saw a spectacular, if somewhat expensive, bull market party where tech led the dance floor and small caps awkwardly shuffled back from the bar.
Trading Volume
1Average daily trading volume on NYSE reached 1.2 billion shares in 2023.
Verified2NASDAQ average daily volume hit 4.5 billion shares in 2023.
Verified3Total US equity trading volume exceeded 1.5 trillion shares in 2023.
Verified4Options trading volume on Cboe reached 10.2 billion contracts in 2023.
Directional5ETF trading volume averaged $2.8 trillion monthly in 2023.
Single source6Dark pool trading accounted for 45% of US equity volume in 2023.
Verified7High-frequency trading firms executed 50-60% of US stock market volume in 2023.
Verified8Average bid-ask spread for S&P 500 stocks narrowed to 2.1 basis points in 2023.
Verified9Retail trading volume peaked at 25% of total US equity volume in early 2021, declining to 18% in 2023.
Directional10NYSE Arca daily volume averaged 1.1 million trades in 2023.
Single source11Total ADV for US equities was 11.2 billion shares in Q4 2023.
Verified12Futures volume on CME Group equity products hit 28.5 million contracts daily average in 2023.
Verified13Block trades represented 6.5% of total NYSE volume in 2023.
Verified14Off-exchange trading volume was 40.2% of total consolidated volume in December 2023.
Directional15Average trade size on NASDAQ fell to 285 shares in 2023 from 350 in 2019.
Single source16Total short interest in US stocks was 2.8% of float end-2023.
Verified17Daily options volume exceeded 50 million contracts on peak days in 2023.
Verified18Equity index futures notional value traded $1.2 trillion daily in 2023.
Verified19ATS volume share reached 15.8% in US equities 2023.
Directional20Retail brokers saw 23% ADV share in 2023.
Single source21Total US stock market value traded $200 trillion in 2023.
Verified22Apple Inc. (AAPL) average daily volume was 57 million shares in 2023.
Verified23Tesla (TSLA) trading volume averaged 120 million shares daily in 2023.
VerifiedTrading Volume Interpretation
While a staggering volume of trades paints a picture of frenzied public participation, the reality is a market dominated by high-speed machines and hidden venues, where the average investor's voice is increasingly just a whisper in a howling gale.
Sources & References
- Reference 1SPGLOBALspglobal.comVisit source
- Reference 2WSJwsj.comVisit source
- Reference 3NASDAQnasdaq.comVisit source
- Reference 4FTSERUSSELLftserussell.comVisit source
- Reference 5MULTPLmultpl.comVisit source
- Reference 6OFFICIALDATAofficialdata.orgVisit source
- Reference 7FINANCEfinance.yahoo.comVisit source
- Reference 8INVESCOinvesco.comVisit source
- Reference 9HLhl.co.ukVisit source
- Reference 10BLOOMBERGbloomberg.comVisit source
- Reference 11CBOEcboe.comVisit source
- Reference 12MSCImsci.comVisit source
- Reference 13BARRONSbarrons.comVisit source
- Reference 14CNBCcnbc.comVisit source
- Reference 15USus.spindices.comVisit source
- Reference 16WILSHIREwilshire.comVisit source
- Reference 17YCHARTSycharts.comVisit source
- Reference 18SIBLISRESEARCHsiblisresearch.comVisit source
- Reference 19SLICKCHARTSslickcharts.comVisit source
- Reference 20NYSEnyse.comVisit source
- Reference 21ETFetf.comVisit source
- Reference 22FINRAfinra.orgVisit source
- Reference 23TABBFORUMtabbforum.comVisit source
- Reference 24SIFMAsifma.orgVisit source
- Reference 25SECsec.govVisit source
- Reference 26CMEGROUPcmegroup.comVisit source
- Reference 27WORLD-EXCHANGESworld-exchanges.orgVisit source
- Reference 28GURUFOCUSgurufocus.comVisit source
- Reference 29MORNINGSTARmorningstar.comVisit source
- Reference 30LSEGlseg.comVisit source
- Reference 31COMPANIESMARKETCAPcompaniesmarketcap.comVisit source
- Reference 32PROSHARESproshares.comVisit source
- Reference 33INVESTOPEDIAinvestopedia.comVisit source
- Reference 34GOLDMANSACHSgoldmansachs.comVisit source
- Reference 35CAPITALIQcapitaliq.comVisit source
- Reference 36REITreit.comVisit source
- Reference 37SEEKINGALPHAseekingalpha.comVisit source
- Reference 38CURRENTMARKETVALUATIONcurrentmarketvaluation.comVisit source
- Reference 39GSPUBLISHINGgspublishing.comVisit source
- Reference 40BESPOKEPREMIUMbespokepremium.comVisit source
- Reference 41GALLUPgallup.comVisit source
- Reference 42SCHWABschwab.comVisit source
- Reference 43INVESTORSinvestors.robinhood.comVisit source
- Reference 44FEDERALRESERVEfederalreserve.govVisit source
- Reference 45BANKRATEbankrate.comVisit source
- Reference 46CERULLIcerulli.comVisit source
- Reference 47PUBLICpublic.comVisit source
- Reference 48PEWRESEARCHpewresearch.orgVisit source
- Reference 49JPMORGANjpmorgan.comVisit source
- Reference 50:HTTPS::https:Visit source
- Reference 51MORNINGCONSULTmorningconsult.comVisit source
- Reference 52TREASURYtreasury.govVisit source
- Reference 53STATISTAstatista.comVisit source
- Reference 54NEWSnews.gallup.comVisit source
- Reference 55CAPGEMINIcapgemini.comVisit source
- Reference 56ALLYally.comVisit source
- Reference 57CORPORATEcorporate.vanguard.comVisit source
- Reference 58E*TRADEe*trade.comVisit source
- Reference 59THINKINGAHEADINSTITUTEthinkingaheadinstitute.orgVisit source
- Reference 60EYey.comVisit source
- Reference 61CHAINALYSISchainalysis.comVisit source
- Reference 62BEAbea.govVisit source
- Reference 63BLSbls.govVisit source
- Reference 64INSIGHTinsight.factset.comVisit source
- Reference 65HOMEhome.treasury.govVisit source
- Reference 66ISMWORLDismworld.orgVisit source
- Reference 67CENSUScensus.govVisit source
- Reference 68EIAeia.govVisit source
- Reference 69FREDfred.stlouisfed.orgVisit source
- Reference 70FISCALDATAfiscaldata.treasury.govVisit source
- Reference 71CONFERENCE-BOARDconference-board.orgVisit source
- Reference 72FACTSETfactset.comVisit source