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S&P 500 notches first record high in two years in tech-driven run

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What to expect from the economy in 2024


Interest rate cuts? Financial expert on what to expect in 2024

05:24

The stock market rallied to record highs on Friday, with Wall Street buoyed by investor expectations of interest rate cuts ahead by the Federal Reserve and robust corporate profits.

With technology stocks driving early year gains, the S&P 500 rose 1.2% to a record 4,839, sailing above the broad index’s prior closing high of 4,796 in January 2022. The Dow Jones Industrial Average surged nearly 400 points, or 1.1%, and the Nasdaq Composite climbed 1.7%.

“When the stock market last peaked, the Fed had yet to begin raising interest rates to combat inflation” Greg McBride, chief financial analyst for Bankrate, said in an email. “In the two years since, we saw the fastest pace of interest rate hikes in 40 years. With inflation now moving back toward the target of 2%, the focus is on when the Fed will begin trimming interest rates.”

Investors were cheered Friday by a report from the University of Michigan suggesting the mood among U.S. consumers is brightening, with sentiment jumping to its highest level since July 2021. Consumer spending account for roughly two-thirds of economic activity. 


How the U.S. avoided a recession in 2023

04:10

Perhaps more importantly for the Fed, expectations for upcoming inflation among households also seem to be anchored. A big worry has been that such expectations could take off and trigger a vicious cycle that keeps inflation high.

Economists at Goldman Sachs started the week by predicting the central bank is likely to start lowering its benchmark interest rate in March and make five cuts all told during the year. 

The investment bank expects the U.S. economy to come in for a “soft landing,” with modestly slowing economic growth, and for inflation to keep dropping this year. Goldman expects the central bank to gradually ease rates, which would steadily reduce borrowing costs for consumers and businesses. 

John Lynch, chief investment strategist for Comerica Wealth Management, thinks robust corporate earnings and expectations for declining interest rates are likely to drive markets higher in 2024.

—The Associated Press contributed to this report



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Terror expert: Leadership of Hezbollah has been “decapitated”

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Terror expert: Leadership of Hezbollah has been “decapitated” – CBS News


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Friday’s airstrike by the Israeli military that killed Hassan Nasrallah, overall leader of the Iran-backed group Hezbollah, in Beirut, Lebanon, along with the recent explosions of pagers and walkie-talkies carried by Hezbollah members, have now eliminated virtually all of the terrorist group’s senior commanders. CBS News national security correspondent David Martin talks with CBS News contributors Andrew Boyd (former head of counter-terrorism operations at the CIA) and Michael Morrell (former acting CIA director) about what these latest developments mean for Israel, and for Iran.

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Starstruck: The public’s one-sided bond with celebrities

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Starstruck: The public’s one-sided bond with celebrities – CBS News


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Parasocial relationships are those that are one-sided – like the fascination and devotion that fans hold for their favorite celebrities. Correspondent Susan Spencer talks with journalist Jancee Dunn about her experience interviewing her hero, rock star Stevie Nicks; and with experts about how that intense fan-celebrity relationship speaks to the human condition.

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Brush with fame: The public’s one-sided bond with celebrities

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Journalist Jancee Dunn admits it: She has been obsessed with rock star Stevie Nicks ever since high school. “I listened to Stevie’s music for hours and hours and hours,” she said. “I tried to dress, in an ill-advised moment, like Stevie! And she’s just kind of bound up in my early years in a way that is really intense and deeply personal.”

The years flew by, but her feelings never faded. So, imagine her joy when, in 1997, Harper’s Bazaar assigned her to interview Stevie Nicks at her California home! 

Dunn began prepping immediately, rehearsing in front of a mirror how she would say “Hell-o, Stevie.”

Did Nicks understand what a fan she was? “I kept it together so I wouldn’t creep her out; I don’t think she fully knew what a fan that I was,” she said. “I knew to kind of pull it back!”

The interview even featured a surreal tour of the rock star’s closet, filled with capes she had worn on stage and her famous platform boots. Dunn said it was, indubitably, one of the happiest afternoons of her life. Her only keepsake: A precious autographed T-shirt that she stores folded in a special place in her closet.

jancee-dunn-and-her-stevie-nicks-t-shirt.jpg
Journalist Jancee Dunn shows Susan Spencer her T-shirt autographed by Stevie Nicks. 

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Asked if she ever though, This is fun, this is great, but Stevie’s just a person like me, Dunn replied, “No! No, why would I think that? It’s Stevie Nicks! Never did I think that, because it’s not true. She’s different. She’s otherworldly.”

Sociologist Kerry Ferris, a professor at Northern Illinois University, says our excitement over celebrities stems from them embodying things that we want for ourselves: “They have some combination of talent and good looks and wealth and renown,” she said.

Ferris has a database of dozens of celebrity encounter stories: “There’s a whole sort of category of encounters that involve physical contact, and fans really get excited about that: ‘I touched so-and-so.’ ‘I gave them a hug.’ ‘I shook their hand.’ ‘I sat next to them on the bus.’ And then, they get off the bus! It’s very fleeting. But it becomes the nugget of the celebrity-sighting story.”

Ferris said these stories typically follow a pattern. First comes disbelief (Is that really Beyoncé?), then strategizing (should I go introduce myself?), and then, often, embarrassment! “People get really worried about how stupid they must have sounded, looked or seemed,” Ferris said.

Psychologists refer to this kind of one-sided relationship as “parasocial.” University of Indianapolis professor Travis Cooper, who teaches in the philosophy and religion department, explains: “The fan is going to typically know a whole lot about the star, maybe their life history (depends on the level of their fandom). And the star is going to know nothing about that fan.”

The intensity of the feeling, Cooper said, is what makes such a relationship so mystifying. He should know – he’s had his own celebrity encounter.

One day, to his surprise, he spotted the actor Jesse Eisenberg at his local Y, an event he described as two worlds colliding: “I had my academic training, all that stuff kind of in my head that filters out how I see the world, all that on the one hand; and then on the other hand, I had this very visceral experience,” Cooper said. “There was a slight embarrassment, almost a giddiness, almost a fanboy kind of reaction at some point.”

He said he doesn’t consider himself a fanboy: “I’d like to not. But I feel like, in that moment, that’s kind of what happened.”

Even mention of a celebrity sighting or encounter is bound to stop the conversation. “It’s a brush with a person larger-than-life,” said Vance Ricks, a professor at Northeastern University in Boston. “And so, maybe some of the glory from that person rubs off on you.”

He says we therefore irrationally treasure these relationships. “It’s a little funny or ironic to call it a ‘relationship,’ when it’s so unidirectional,” he said. “What you’re often doing is projecting a sense of being understood by that person, or of knowing about that person.”

What does that tell us about the human condition? “Many of us want some kind of attachment,” Ricks said. “And in some cases, we may create that.”

Jancee Dunn felt that attachment, especially when – after she interviewed Stevie Nicks – the rock star graciously invited her to be an overnight house guest. “I thought, ‘Okay, should I? Shouldn’t I?’ It seemed invasive, it seemed weird. I said no, and I got in the cab. And as I’m pulling away, I mean, I couldn’t have been two blocks down the street where I thought, You idiot!”

She feels the same regret decades later, and even wrote about it for The New York Times, where she is a columnist for the Well section. “Even now, if I’m at the grocery store or the pharmacy, and I hear ‘Edge of Seventeen’ or one of Stevie’s hits, I get a pain in my heart,” she laughed.

What would Dunn like to tell Nicks today? “Stevie, if you were to invite me over to your house again, I would happily spend the night, I would clean up in the morning, and I would be a very good guest!” she laughed.

      
For more info:

       
Story produced by Amiel Weisfogel. Editor: George Pozderec. 

     
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