Markets Soar in 2024 but Inflation and Debt Loom as Economic Wild Cards

Markets have had an excellent start to 2024, with the S&P 500 and Nasdaq leading gains. If this performance continues, it would be a spectacular year.

Inflation remains stubbornly high, at 3.5% in March. This could lead the Fed to delay interest rate cuts forecasted for later in 2024.

The job market remains strong, with 303,000 jobs added in March and unemployment falling to 3.8%. This supports continued economic growth.

Household debt is at record levels, led by increases in credit card debt. This could pose future economic risks if consumers pull back spending.

Forecasts for the rest of 2024 are moderately bullish, with the S&P 500 potentially rising over 10% by year-end. However, inflation and Fed policy remain wild cards.