Home Most Popular <html> The Great Wall Street Bull Rally of 2024

The Great Wall Street Bull Rally of 2024

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After overcoming the financial nightmares of 2022, Wall Street soared to remarkable heights in 2023. And the good times are not stopping anytime soon. The Dow, the S&P 500, and the Nasdaq Composite have all shown outstanding performances this year. With the S&P 500 and Nasdaq Composite already delivering double-digit returns, it’s safe to say the bull run has plenty of room to grow.

While some experts express concerns about the overvaluation of U.S. stocks, the prevailing belief is that the rally will only gain momentum as the year progresses.

The Strong Foundation of the U.S. Economy

Following the FOMC meeting on Mar 20, the Federal Reserve decided to maintain the benchmark lending rate within the range of 5.25-5.5%. The Fed’s most recent “dot-plot” suggests a possible decline in the benchmark lending rate to 4.625% by the end of 2024. This projection hints at three potential 25-basis-point rate cuts.

Additionally, the central bank raised its GDP forecast for 2024 in March, now anticipating a growth rate of 2.1%, up from the previous estimate of 1.4% in December. The current state of the economy is robust, with inflation at a manageable 3.5-3.7% range, down significantly from its peak of 9.1% in June 2022. The labor market is resilient, wages are rising, and consumer spending remains strong as ever.

Exciting Projections for the Market

Several notable economists and researchers have painted a rosy picture for the future of Wall Street’s flagship index, the S&P 500. Barclays has upped its target for the S&P 500 in 2024 to 5,300 from 4,800, citing the impressive earnings of major tech companies. Should these tech giants continue their outperformance, Barclays sees a bull case scenario of 6,050 for the index.

Yardeni Research forecasts the S&P 500 to hit 5,400 by the end of 2024, with projections of 6,000 in 2025 and 6,500 in 2026. Capital Economics and Société Générale have similarly raised their 2024 targets for the benchmark index, bolstered by the ongoing enthusiasm for artificial intelligence technologies.

Selecting Winning Stocks

With numerous promising options in the market, focusing on two key criteria can simplify the decision-making process. First, opt for U.S. tech giants with a market capitalization exceeding $50 billion, boasting established business models and renowned brand recognition. Second, target stocks with strong growth prospects for 2024, accompanied by positive earnings estimate revisions within the past 30 days.

Five stocks that align with these criteria are NVIDIA Corp. (NVDA), Meta Platforms Inc. (META), Super Micro Computer Inc. (SMCI), Micron Technology Inc. (MU), and Synopsys Inc. (SNPS).

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Micron Technology, Inc. (MU) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Synopsys, Inc. (SNPS) : Free Stock Analysis Report

Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report

Meta Platforms, Inc. (META) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.