2024 Stock Outlook: Interest Rates to Influence Sector Performance, Tech Expected to See Strong Growth if Rate Hikes Moderate
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Interest rates will determine which sectors outperform in 2024 stocks. Defensive sectors may do well if rates fall quickly. Tech should outperform if rate moves are bumpier.
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Utilities, staples, and energy are the worst performing S&P sectors in 2023 so far. Tech is the best performer, up over 50%.
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Defensive sectors rose last week after signals of 2024 rate cuts. Tech also rose but less than utilities and staples.
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Wall Street expects 11.5% S&P 500 EPS growth in 2024. But growth ranges from 2-3% for energy to 9-17% for tech.
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Tech, healthcare, consumer discretionary expected to show strong double-digit earnings growth in 2024. Utilities, staples, financials likely to lag.