A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. The S&P 500 index has climbed 14% in 2023, as Wall Street’s infatuation with artificial intelligence and optimism that the Federal Reserve could soon stop hiking interest rates have helped power stocks higher.
That makes sense when considering candidates’ priorities before voters start lining up at the polls, says Joe Abbott, chief quantitative strategist at Yardeni Research. “Presidents and political parties want to have a strong economy and stock market in their favor before they hit the campaign trail in the fourth year,” wrote Abbott in an email to CNN. During the first and second years of presidential terms, the S&P 500 has risen 6.7% and 3.