Stocks continued their winning streak in December on lower-than-expected inflation data, market expectation of interest rate cuts early in 2024, and optimism that the U.S. economy will be able to avoid a recession. The S&P 500 and the Dow advanced 4.5% and 4.9%, respectively, while the technology-heavy Nasdaq rallied 5.6% for the month. The recent runup in equity prices is primarily due to expectations of earlier interest rate cuts, rather than a significant improvement in corporate earnings expectations.