Stock-market bulls are growing bolder: Now Deutsche Bank predicts the S&P 500 will hit a record 5,100 in 2024

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  • According to Deutsche Bank, stocks will have another banner year in 2024.
  • The benchmark S&P 500 will rise 12% to hit a new all-time high of 5,100, strategists said.
  • Much of Wall Street turned bearish on the index, which defied worrisome forecasts for stellar gains this year.

Deutsche Bank has become the latest big name on Wall Street to issue high stock market forecasts for 2024, analysts predict. S&P 500 It will rise to a new all-time high next year.

The bank’s strategists said on Monday that the benchmark share index would trade at 5,100 points at the end of 2024, up 12 percent from current levels and clear of the previous record high of 4,768 points. Set in January 2022.

Bank of America, Goldman Sachs, RBC Capital Markets and BMO Capital are among other prominent Wall Street firms predicting that US equities will outperform in 2024.

Deutsche Bank’s Bullish View of the US to a “Soft landing” economic situationwith Slowing inflation Every quarter GDP growth remains strong..

“Core inflation has fallen … a further slowdown would bring inflation back to pre-pandemic levels,” the team led by Binky Chadha wrote in a research note published by Business Insider.

Chadha’s team did not count from the game. The possibility of reductionBut he said it is unlikely to have too much of a negative impact on stock prices as it is “broadly expected, and expected to be light and short”.

Under that scenario, earnings for S&P 500-listed companies would still rise 10% in 2024, the strategists said. If America can avoid recession, that number will rise to 19 percent, he added.

Economic dream

Deutsche Bank’s upbeat outlook reflects that this has been a great year for both the economy and stocks.

The Federal Reserve’s interest rate hikes since the end of 2022 have kept inflation low. 3.2% since OctoberWithout tanking growth or the job market.

US gross domestic product grew 4.9 percent in the third quarter, beating forecasts. unemployment rate Despite the central bank’s rapid tightening campaign, it is still hovering below 4 percent. Extensive layoffs.

Meanwhile, stocks defied analysts’ gloomy forecasts for a rally in 2023. “Magnificent Seven” Big Tech GroupApple, Microsoftowner of Google Alphabet, Amazon, NiveaFacebook parent Meta forumsAnd Tesla – Directs the payment.

The S&P 500 is up an impressive 19% year-to-date. Nasdaq Composite increased by 36 percent Dow Jones Industrial Average He added just under 2,200 points.

Bullying on Wall Street

Something is clear. Bright atmosphere Among stock pickers these days, Deutsche Bank, far from the only big name on Wall Street to predict the S&P 500, may hold the top spot.

Bank of America And RBC Capital Markets Both predicted last week that the benchmark index would reach 5,000 by the end of 2024. Societe Generale After a lot of recession-fueled volatility, he put a slightly tough sell at 4,750 at the end of the year.

BMO Capital They joined the party Monday, with chief strategist Brian Belsky echoing Deutsche’s forecast that stocks are at the start of a multi-year bull market and that the S&P 500 will hit 5,100. Goldman Sachs projects The index rose to 4,700 the following year.

Adding to Chada’s credentials is the fact that he was one of the Wall Street strategists who called this year’s spectacular stock market rally.

In Deutsche Bank’s view, he wrote. It was published this time last year, the S&P 500 will rise in early 2023, giving up some of its gains as the recession hits, and then rise to 4,500 by the end of the year. The benchmark traded just 50 points off its level late Monday.

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