By David Randall
NEW YORK(Reuters) – As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally.
The key catalyst for stocks will likely continue to be the expected trajectory of the Federal Reserve’s monetary policy. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 19.6% year-to-date and taken the index to a fresh closing high for the year on Friday.
At the same time, seasonal trends have been particularly strong this year. In September, historically the weakest month for stocks, the S&P 500 fell nearly 5%. Stocks swung wildly in October, a month noted for its volatility. The S&P 500 gained…
