S&P 500 Predicted to Reach New All-Time High in 2024

According to Yahoo News, Bank of America predicts that the S&P 500 will hit a fresh all-time high in 2024, joining other major Wall Street firms in forecasting a strong year for stocks. In a research note published last week, strategists expect the benchmark index to trade at 5,000 points by year-end, which is 10% above its level as of Tuesday's closing bell and well above its current record high of 4,768 points set in January 2022. Stocks have had a strong 2023, defying gloomy predictions from several market experts. The S&P 500 has climbed 19% year-to-date, while the Nasdaq Composite is up 36% and the Dow Jones Industrial Average has added 2,300 points over the same period. Equities have rallied this year despite a surge in global tensions, with wars raging in Ukraine and the Middle East, and the Federal Reserve's aggressive monetary-tightening campaign, which has lifted interest rates from near-zero in early 2022 to around 5.5% in a bid to tame inflation. Many traders now expect the central bank to start reducing borrowing costs next year, but stocks should be in good stead even if it doesn't, according to a team led by Savita Subramanian. They believe the market has absorbed significant geopolitical shocks already and that companies have adapted to higher rates and inflation. Wall Street's bull case is based on the idea that the Fed is close to achieving a so-called "soft landing" for the economy, where inflation falls in line with its 2% target level without a slump in growth or a surge in unemployment.