After a bumpy 2022, the previous year brought back significant investors' optimism toward the US equity markets. Tech companies were among the main leaders of the market. Here NVDIA should be especially mentioned as it showed that investors are ready to strongly support businesses around AI technology. This one stock gained 239% in 2023 which was an astonishing result for one company on the stock market. In terms of performance META should be also mentioned, as it also managed to gain 194% within a single year.
The US equity markets continued to be under the strong influence of the US monetary policy and Fed`s measures. The highest drop within a year was in February, when S&P lost around 10% in value and in July with a drop of around 5%, due to fears of potential recession in the US. However, those fears were not supported in reality, so the market swiftly turned toward the upside. As of the year end, the Fed further supported market sentiment with their prediction over interest rates of 4.6% as of the end of 2024. The potential for a rate hike pushed the value of S&P 500 toward the 4.750 level, which was another peak since January 2022.
Analysts are not united when it comes to the S & P 500 forecast for 2024. On one side are those who are noting a potential significant drop in the value of the index, supported by weak performance of companies in the environment of high interest rates. On the other side are those who are noting a potential for moderate growth of the index, but only up to the level of 8%. Can S&P 500 repeat a year 2023, is up to be seen.
The US equity markets continued to be under the strong influence of the US monetary policy and Fed`s measures. The highest drop within a year was in February, when S&P lost around 10% in value and in July with a drop of around 5%, due to fears of potential recession in the US. However, those fears were not supported in reality, so the market swiftly turned toward the upside. As of the year end, the Fed further supported market sentiment with their prediction over interest rates of 4.6% as of the end of 2024. The potential for a rate hike pushed the value of S&P 500 toward the 4.750 level, which was another peak since January 2022.
Analysts are not united when it comes to the S & P 500 forecast for 2024. On one side are those who are noting a potential significant drop in the value of the index, supported by weak performance of companies in the environment of high interest rates. On the other side are those who are noting a potential for moderate growth of the index, but only up to the level of 8%. Can S&P 500 repeat a year 2023, is up to be seen.
