The S&P 500 started 2023 with a bang, rising nearly 2% during the first four trading days of the year. The rally was attributed mostly to Friday's jobs report, which showed wages grew at a slower pace in December compared with one year earlier. Investors cheered the news as a sign that inflation in general could be slowing down, fueling optimism that the Federal Reserve could ease up on interest rate increases anticipated for 2023.

Still, a 2% increase is barely a blip following a rotten year for stocks. The S&P 500 index, which represents about 80% of the value of the U.S. stock market, dropped by more than 19% in 2022. That's the worst year on record since 2008, at the height of the financial crisis. So despite last week's rally, you may be wondering: Is it safe to invest in the S&P 500 index right now?

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Source Fool.com