What is the stock market expected to do in 2024?
Wall Street analysts ultimately expect S&P 500 companies to grow earnings by roughly 11% in 2024. And by the fourth quarter, growth is expected to have roughly evened out, with the top 10 stocks expected to see growth of 17.2% while the other 490 companies see growth of 17.8%, according to FactSet data.
The US stock market enjoyed a strong first quarter in 2024, advancing 10%. But inflation was stickier than some expected. In fact, the March CPI number that came out this morning was hotter than expected, too. And that's leading many to question when the Federal Reserve will begin cutting interest rates.
The S&P 500 still has 30% upside between now and the end of 2025, according to Capital Economics. "Our end-2025 forecast of 6,500 for the index is premised on its valuation reaching a similar level to its peak during the dot com mania," Capital Economics said.
Here's the Growth Stock to Buy Right Now. The Nasdaq-100 technology index plunged into a bear market in 2022 on the back of a 33% loss for the year.
U.S. stock returns: 2023 optimism carries forward
This heightened optimism is on par with the positive outlook in December 2021, when investors anticipated a 6% stock market return for 2022. Investor expectations for stock returns over the long run (defined as the next 10 years) rose slightly to 7.2%.
The bank's analysts give a positive forecast for the Dow Jones exchange rate in 2024. In their opinion, index quotes will increase by 10% to $40,000 in 2024. If the US economy avoids recession, growth could reach up to 19%. This scenario is more likely due to cooling inflation and stable GDP growth.
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
Traders work on the floor during morning trading at the New York Stock Exchange on March 6, 2024. Despite the heavy concentration of the U.S. market rally in expensive, AI-focused tech stocks, analysts say Wall Street is not yet in bubble territory.
The S&P 500 still has 30% upside between now and the end of 2025, according to Capital Economics. "Our end-2025 forecast of 6,500 for the index is premised on its valuation reaching a similar level to its peak during the dot com mania," Capital Economics said.
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Bonds.
- Money market funds.
- Mutual funds.
- Index Funds.
- Exchange-traded funds.
- Stocks.
What will happen to the S&P 500 in 2024?
Analysts expect overall S&P 500 earnings to rise 9.5% in 2024 after increasing around 4% in 2023, LSEG data showed. But valuations have risen along with stock prices.
Stock prices have surged significantly over the past 18 months. The S&P 500 is up by 45% since it bottomed out in October 2022, while the tech-heavy Nasdaq has soared by a whopping 58% in that time. Investing now, then, means paying much higher prices than you would if you'd bought a year or two ago.
Analysts See Double-Digit Gains from Amazon
Analysts are overwhelmingly bullish on Amazon, and multiple brokerages listed it as a top pick for 2024. It has a consensus rating of “Strong Buy,” and is the highest-rated stock among the Magnificent 7.
Stocks are considered long-term investments. This is, in part, because it's not unusual for stocks to drop 10% to 20% or more in value over a shorter period of time. Investors have the opportunity to ride out some of these highs and lows over a period of many years or even decades to generate a better long-term return.
The shift up in portfolio returns reflects a 7.4% expected annualized return for U.S. stocks in the next 10 years, up from the 6.5% assumption made last year.
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| International Business Machines Corp. (ticker: IBM) | Technology | 3.6% |
| Abbott Laboratories (ABT) | Health care | 1.9% |
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
Economic growth actually accelerated above its 10-year average in 2023. That resilience, coupled with a fascination about artificial intelligence (AI), changed investors' collective mood. The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official.
To some investors, this might seem unlikely. The Dow Jones Industrial Average, an index that has astonished with its ascent over the past decade, likely will continue to astonish through the 2020s, rising to 50,000 by 2027.
Capital Economics chief market economist John Higgins predicts the S&P 500 can hit 6,500 by the end of 2025. This outlook is more dependent on the current AI-fueled bubble growing. For now, he maintains the bubble-like trade in the market can bring the benchmark average to 6,500 by the end of 2025.
- Celsius, Sweetgreen, and Instacart are up between 59% and 95% so far in 2024.
- Celsius may not seem cheap right now, but five years ago you could've bought it for less than what it should earn next year.
Which stock will double in 1 month?
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Motherson Wiring | 70.15 |
| 2. | Hindustan Zinc | 398.70 |
| 3. | Lloyds Metals | 722.55 |
| 4. | NMDC | 235.65 |
In February 2024, divergent interests were seen within sectors. The top 10 stocks that saw the maximum month-on-month increase in value were SBI, Reliance Industries, TCS, Maruti Suzuki, Power Grid Corp., Whirlpool of India, ICICI Bank, M&M, Coal India, and L&T.
Stock market crashes wipe out equity-investment values and are most harmful to those who rely on investment returns for retirement. Although the collapse of equity prices can occur over a day or a year, crashes are often followed by a recession or depression.
| Name | Date |
|---|---|
| 2015–2016 stock market selloff | 18 Aug 2015 |
| 2018 cryptocurrency crash | 20 Sep 2018 |
| 2020 stock market crash | 24 Feb 2020 |
| 2022 stock market decline | 3 Jan 2022 |
A stock market fall can occur as a result of a large disastrous event, an economic crisis, or the bursting of a long-term speculative bubble.
