NEW YORK, NEW YORK – DECEMBER 29: Traders work on the floor of the New York Stock Exchange (NYSE) on the last day of trading for the year on December 29, 2023 in New York City. The Dow was up slightly in morning trading in what has been a strong year for the stock market despite many economists predictions that the American economy would experience a recession. (Photo by Spencer Platt/Getty Images)
Spencer Platt | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Last trading day of 2023 U.S. stocks fell Friday, disappointing investors who were hoping the S&P 500 would close the year on a record high. Still, it was a mighty good year for major indexes. Europe’s Stoxx 600 index added 0.2%, giving it a 12.6% gain for the year. Germany’s DAX posted more impressive gains, rising 20.31% despite the country’s gloomy economic outlook.
Nasdaq rebound The Nasdaq Composite popped 43% in 2023, its best year since 2020. Only 2020 and 2009 saw bigger gains for the tech-heavy index, which is all the more impressive considering how the Nasdaq plunged 33% in 2022. What changed last year? The biggest story: Investors returned to risk, driven by a surge in generative artificial intelligence and the U.S. Federal Reserve halting rate hikes.
Bullish on bitcoin Bitcoin rallied about 152% in 2023 despite high-profile criminal cases against cryptocurrency exchanges FTX and Binance. Bitcoin was last trading slightly above $44,000 — and many industry executives think the cryptocurrency’s poised for a new bull run, thanks to an event known as “halving” and the potential approval of a bitcoin exchange-traded fund in the U.S.
Price-sensitive consumers U.S. companies are losing their pricing power. During the pandemic, consumers splurged on goods — and when the pandemic was over, services, like eating out and traveling, were in hot demand. Companies took advantage of that willingness to spend and increased their prices to pad their earnings. But in 2023, consumers are cutting back — and it’s affecting Wall Street.
[PRO] Things to look forward to Investors have reason to be optimistic in 2024, writes CNBC’s Sarah Min. The three interest rate cuts that the Federal Reserve has penciled in for this year will likely be a tide that lifts all boats, meaning that last year’s Magnificent Seven-driven rally should broaden out. But not everyone’s so bullish about 2024.
The bottom line
Instead of ending the year with a bang by surpassing its all-time high, the S&P 500 let out a whimper — to paraphrase the poet T.S. Eliot’s famous lines — and fell 0.28% on the last trading day of 2023.
As with any market move, it’s hard to attribute any definitive reason to it. I think, however, the S&P’s December rally was too reliant on the Federal Reserve’s dovish pivot. Without further positive news, and with the optimism priced in already, the S&P didn’t have a concrete reason to rise further.
Moreover, several analysts have pointed out that stocks are already priced above their fair valuation; that is, the price of a stock may be too high relative to its earnings per share.
“Arguably, the bull market is overbought, and there are too many bulls,” Ed Yardeni of Yardeni Research wrote. Echoing that sentiment, Sarat Sethi, managing partner at DCLA, told CNBC he thinks “valuations are stretched.”
Still, let’s not throw away the baby with the bathwater. Friday’s disappointing session aside, 2023 has been a banner year for a huge swathe of the market. Here are, in my book, the biggest winners and losers of last year:
Winners
U.S. indexes: For 2023, the S&P jumped 24.23%, the Dow gained 13.8% and the Nasdaq rocketed 43.42%.
Bitcoin: Shrugging off the high-profile criminal cases against FTX and Binance, bitcoin surged around 152%.
Gold: The precious metal recorded its first annual gain since 2020 of 13%, as geopolitical risks and peak interest rates made gold shinier to investors.
Losers
Although part of financial journalism necessarily involves making predictions, a quick glance at that list shows how difficult it is to do so. Going into 2023, many thought a recession was in the cards. Instead, markets were dealt a winning hand. Here’s hoping 2024 thwarts all the negative predictions and delivers positive surprises too.
Fortescue is marching towards zero emissions as it invests in new, zero-emission mining equipment options across its global operations. And that investment? It’s already paying off. One analyst says the company’s saving almost $400 million in fuel costs alone. Each year.
From massive, Liebherr-built electric haul trucks and excavators to more than $400 million in Chinese equipment from XCMG, Fortescue is putting its money where its mouth is and making real efforts to decarbonize its global mining operations.
“We’re moving rapidly to decarbonize our Pilbara iron ore operations and eliminate our Scope 1 and 2 terrestrial emissions by 2030. To achieve this target, we will need to swap out hundreds of pieces of diesel mining equipment at the end of their life with zero emissions alternatives,” said Fortescue Metals Chief Executive Officer, Dino Otranto, when the XCMG order was announced. “As the global mining industry continues to evolve, we’re proud to be at the forefront of driving innovation in value adding green technology and showing the world that industry can decarbonize.”
Those efforts aren’t just cutting back on air pollution. Electric equipment assets are helping to keep the company’s workers safe and healthy, too. What’s more, they’re saving the company money – they’re already seeing $300-400 million in fuel savings annually.
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Liebherr T264 electric haul truck
Liebherr T264; via Fortescue.
The Liebherr T264 electric haul trucks now working for Fortescue defy common sense notions of size, scale, and power. Each truck tips the scales at 176 tonnes (194 tons) and can haul more than 240 tonnes (265 tons) of payload thanks to powerful electric motors and a big-as-a-house-sized 3.2 MWh battery that can be recharged in a little over 30 minutes by Liebherr’s proprietary 6 MW DC fast charger.
If you could keep the car from exploding, that 6 MW (that’s 6,000 kW to you and me) charger could zap a Tesla Model Y Long Range’s 75 kWh battery in some thirty (30) seconds.
Meanwhile, big electric haul trucks like this 240 ton unit from Caterpillar can, in certain use cases with high amounts of regenerative braking, operate without any significant cost to recharge. At that point, the reduced maintenance and downtime of BEVs compared to diesel vehicles becomes icing on the TCO cake.
We spoke to Fortescue Zero executives a few months ago on a special interview episode of Quick Charge. Check it out (above) then let us know what you think of Fortescue’s fuel savings in the comments.
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This world’s first fully electric deconstruction site is being hailed as a landmark in sustainable urban development — and it’s powered by Siemens technology and Volvo Group’s battery-electric trucks and heavy equipment.
The deconstruction project (that’s kind of like a really careful demolition) marks the first full-scale electric deconstruction of its kind, and serves as important proof that with the right partners and the will to do it, urban construction projects like this can be carried out sustainably, today – and all without fossil fuels. It’s all part of Siemens’ €500 million technology campus redevelopment, the deconstruction site in Erlangen, Germany, and marks a pivotal step in advancing sustainable urban transformation and circular construction practices.
In collaboration with the demolition specialists at Metzner Recycling, Volvo CE deployed a fully electric fleet of equipment assets specially chosen to deliver quiet, precision demolition across the 25,000 cubic meter job site.
As well as deconstruction tasks, the electric machines helped sort and process approximately 12,800 tons of construction waste, with 96% recycled into raw materials for future use – supporting the shift towards circular materials management.
VOLVO CE
“At Siemens Real Estate, we are committed to pushing the boundaries of sustainable construction and demolition,” explains Christian Franz, Head of Sustainability at Siemens Real Estate. “This groundbreaking electric deconstruction project boasts an impressive 96% recycling rate and is a testament to our commitment to achieving excellence in sustainability … this project illustrates how partnerships and determination can create a lasting impact and help shape a more sustainable real estate industry.”
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In addition the construction equipment was hauled into the site by Volvo Truck’s battery electric semi trucks, enabling emission-free operations from demolition, to crushing, materials processing, and transport.
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Hyundai offered a first look at the hot hatch earlier this week after unveiling the Concept Three, its first compact EV under the IONIQ family. The new EV, set to arrive as the IONIQ 3, already has a sporty, hot hatch look, but that could be just the start.
Hyundai has a new EV hot hatch in the making
The Concept Three took the spotlight at IAA Mobility in Munich with a daring new look from Hyundai. Based on its new “Art of Steel” design, the concept is a stark contrast to the Hyundai vehicles on the road today.
Hyundai took the “Aero Hatch” design to the next level, deeming it “a new typology that reimagines the compact EV silhouette.” And that it does.
When it arrives in production form in mid-2026, it’s expected to take the IONIQ 3 name as a smaller, more affordable sibling to the IONIQ 5.
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Hyundai is set to unveil the electric hatchback next spring with an official launch planned in Europe in September 2026. According to Hyundai’s European boss, Xavier Martinet, the IONIQ 3 could make for the perfect EV hot hatch.
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)
Martinet hinted that the IONIQ 3 could receive the “N” treatment, telling Auto Express that “The concept is quite sporty, and obviously you have heritage with N brand.” Hyundai’s European boss added that “it’s a fair topic to consider.”
Although it doesn’t sound too convincing, Hyundai’s head of design, Simon Loasby, called it “an opportunity.” Loasby was quick to add, “We’re not calling it N, it’s not approved yet.”
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)
“But I think everyone in the company is realising what Europe needs, and that’s compact hot hatches, so it’s a topic for discussion,” Hyundai’s design boss added.
The Concept Three is 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, or about the size of the Kia EV3 and Volkswagen ID.3. Both of which are set for hot hatch variants.
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)
If the IONIQ 3 N does come to life, it will be the third Hyundai EV to receive the high-performance upgrade, following the IONIQ 5 N and IONIQ 6 N.
The IONIQ 5 N “was just the first lap,” according to Joon Park, vice president of Hyundai’s N Brand Management Group. He told Auto Express that Hyundai is “at the starting line” and plans to apply what it learned from its first EV hot hatch to upcoming models.
If you’re looking for an affordable electric hot hatch, Hyundai already offers one. After Hyundai cut lease prices last month, the IONIQ 5 N is now listed at just $549 per month. That’s $150 less per month than in July.