The outlook for the US stock market in 2024 appears to be a mix of moderating inflation, economic growth, and interest rate adjustments. Key factors and predictions include stock market
Fair Value: The US stock market is currently trading at a price/fair value of 1.00, meaning that the market is equal to a composite of fair value estimates.
Inflation and Economic Growth: Inflation is expected to moderate throughout 2024 and into 2025. The rate of economic growth is forecast to slow in 2024, but no recession is anticipated.
Interest Rates: The Federal Reserve is projected to make six interest-rate cuts over the course of 2024, double that of their current projection.
Sector Performance: The technology sector is expected to move back to a choice for underweighting, while communications, basic materials, real estate, and utilities are considered attractive overweightings.
Market Predictions: Wall Street's consensus is a modest single-digit gain for stocks, with the median projection calling for the S&P 500 to rise by about 8%. Some of the biggest Wall Street companies, including JPMorgan Chase and Morgan Stanley, expect the S&P to fall in 2024.
International Growth: The US, euro area, and China are forecasted to grow at 1.2%, 0.3%, and 4.4%, respectively, in 2024. India is expected to remain a stand-out performer.
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