Equity markets closed out December and the 2023 trading year, with all major indices solidly higher. Investor enthusiasm reflected optimism around easing inflation, the employment environment, and a strengthening U.S. economy. With prospects improving for an easing rate cycle, the VIX Index or “fear gauge” reflected market sentiment, with the index hovering in the low teens for much of December. For the full month, the Dow Jones Industrial Average increased 4.8%, the S&P 500® index was up 4.4%, and the smaller cap-weighted Russell 2000® increased 12.1%.