S&P 500 to end 2024 with small gain after strong 2023: Reuters poll
By Caroline Valetkevitch
NEW YORK (Reuters) — The S&P 500 will finish this year above the 5,000 mark, but up just a little more than 2% from its current level, as it remains unclear when the Federal Reserve will begin cutting interest rates, according to strategists in a Reuters poll.
By end-December, the benchmark index will be at 5,100, according to the median forecast of 40 strategists polled by Reuters during the last week and a half. That is 2.4% higher than Wednesday's close of 4,981.80.
That latest prediction was well above the 4,700 year-end level forecast in a Reuters poll in November.
The S&P 500 has risen sharply in recent months, partly fueled by the view the Fed could soon start cutting rates. The index has hit record highs this year, and is up about 4% so far for 2024 after rising 24% in 2023.
Optimism over artificial intelligence that drove a rally in technology stocks last year could be a source of support.
Shares of Nvidia (NASDAQ:NVDA) jumped late on Wednesday following the chipmaker's forecast for fiscal first-quarter revenue above estimates on robust demand for its chips that dominate the market for AI. It also sparked gains in other AI hardware stocks.
Still, eight of 13 strategists who answered an additional question on whether a correction is likely in U.S. stocks over the next three months said it was likely or highly likely.
«I'm cautious at these levels and I think we're headed for some sort of pullback,» said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
«That's based on the fact yields are probably going to work their way higher. The Fed is in no mood to loosen credit any time soon, so that will be a deterrent in terms of the market. Also, valuations are
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