S&P 500’s 2024 Rally Surprises Analysts Who Expected a Slowdown
Despite predictions of a modest gain, the S&P 500 is on track for a remarkable 25% increase in 2024, defying expectations.
S&P 500, 2024 Rally, Wall Street, AI, Economy, United States
New York: So, last year, everyone thought the stock market was going to slow down, right? Well, surprise! The S&P 500 just kept climbing, and it’s looking like it’ll finish 2024 with a whopping 25% gain. Can you believe that?
Big names like Bank of America and Goldman Sachs were all saying the market would cool off after a big AI-driven boom. But instead, the S&P 500 just kept hitting new highs. By late January, it had already passed the targets set by analysts. Talk about a plot twist!
Julian Emanuel from Evercore ISI even changed his mind mid-year, ditching his earlier predictions for a dip and setting a new target of 6,000. He said trends can go on longer than we think, and boy, was he right!
Even with the Fed raising interest rates, the economy kept surprising everyone. It’s been strong enough to boost corporate profits, and the excitement around AI has kept tech stocks soaring. Plus, with Trump back in the picture, there’s talk of tax cuts that could help businesses.
But here’s the kicker: a lot of the Wall Street experts who were bearish have flipped their stance. Morgan Stanley’s Mike Wilson, who was all doom and gloom, turned positive on stocks. It’s wild how quickly things can change!
Now, strategists are feeling optimistic again. They’re seeing reasons to believe the S&P 500 will keep climbing, thanks to a more relaxed Fed and a government eager to keep the economy moving. Some even think it could hit 6,500 next year!
Sure, there are worries about whether AI will live up to the hype and if Trump’s policies might stir up inflation. But overall, no one seems to think the rally is ending anytime soon. In fact, none of the 19 strategists surveyed expect a decline next year.
So, if you’re thinking about investing, it might be a good time. Just remember, markets can be unpredictable, but right now, the outlook is looking pretty bright!