“Wall Street’s Bullish Forecast: S&P 500 Hits Record Highs in 2024, Analysts Predict More Gains Ahead”

In 2024, Wall Street continues to set new records as the stock market rally shows no signs of slowing down. BMO Capital Markets chief investment strategist Brian Belski recently raised his year-end price target for the S&P 500 to 5,600 from 5,100, citing strong market momentum that is likely to persist. This new target represents about a 7% upside from Monday’s close, reflecting Belski’s confidence in the market’s strength.

Belski is not alone in his bullish outlook, as other Wall Street strategists have also increased their year-end targets in response to better-than-expected earnings and robust US economic growth. The high-water mark on the Street entering the year was 5,200, but with earnings outperforming analyst expectations and economic indicators surprising to the upside, many strategists are now targeting 5,200 or higher.

The rally in stocks has been fueled in part by a shift in investor expectations regarding Federal Reserve interest rate cuts. Initially, investors were pricing in nearly seven rate cuts for the year, but as inflation remained stubbornly high, that number has decreased to around two cuts. This aligns with the Fed’s most recent projections, which suggest the central bank may cut rates two or three times in 2024.

Despite the market’s strong performance, Belski cautions that there may still be bumps along the way. Historical analysis suggests that the market has yet to experience its worst drawdown of the year, with the average pullback during the second year of a bull market being 9.4%. However, Belski believes that any severe pullback will likely occur at higher index levels than previously anticipated, providing a higher landing spot for the S&P 500 after a rebound.

Looking ahead, historical trends indicate that further gains are likely for the S&P 500. When the index rallies more than 8% in the first five months of the year, as it is currently doing, it tends to gain more than 7% by year-end 70% of the time. Belski’s analysis suggests that strong performance in the early months of the year often translates into continued gains throughout the year.

Overall, Wall Street’s optimism for the stock market in 2024 remains high, with strategists like Belski confident in the market’s momentum and potential for further growth. As the market continues to defy expectations and set new records, investors are eagerly watching to see how the year unfolds.

For more in-depth analysis of the latest stock market news and events moving stock prices, visit Yahoo Finance. Stay updated on the latest financial and business news by reading the latest articles from Yahoo Finance.