The S&P 500, an index of large U.S. companies, posted a total return of 11.6% for the Fourth Quarter of 2023. Large U.S. stocks outperformed international for the quarter as measured by the iShares MSCI ACWI ex-US Index, a representation of international stocks outside the U.S. The International ETF return for the Fourth Quarter of 2023 was 10.1%.
U.S. and International stocks both benefitted from moderating inflation readings that prompted U.S. and global central banks to look more seriously at slowing or pausing rate hikes. Looking further into 2024, investors became optimistic of potential rate cuts, as inflation is expected to be low and economic growth flat
.U.S. stocks significantly outperformed international for the full year 2023. The U.S. S&P 500 Index achieved price return of 26.2% for the full year, versus 15.7% return for the International iShares MSCI ACWI ex-US Index. The U.S. dollar spent most of the year rising, as interest rates rose and global turmoil increased. The U.S. dollar is often seen as a safe haven during turbulent times.