Many Wall Street strategists, who had predicted a dismal year for equities, were proven wrong. This has led to a shift in predictions for 2024, with strategists from Bank of America, Deutsche Bank, and Goldman Sachs predicting new all-time highs for the S&P 500. They believe a Federal Reserve pivot and the continued influence of AI will drive these gains.
Key takeaways:
- Despite predictions of a rough year, the S&P 500 index soared 25% in 2023, with the Nasdaq Composite climbing 44%, and the Dow Jones Industrial Average adding 4,500 points to hit a new all-time high.
- Strategists had predicted a recession and a fall in the S&P 500 over the first six months of 2023, but this did not occur.
- The market rally was fueled by strong US growth and a surge in interest in artificial intelligence, with the "Magnificent Seven" Big Tech group driving over 70% of the S&P 500's gains.
- Many Wall Street strategists are predicting that the S&P 500 will hit new all-time highs in 2024, with AI expected to continue driving gains.