2024 Stock Market Hinges on Soft Landing; AI and Big Tech Stocks Seen Leading Modest Gains
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The stock market outlook for 2024 depends on whether the Fed achieves a "soft landing" for the economy with slower growth but no recession. If so, forecasts call for 8%-9% S&P 500 gains.
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Artificial intelligence will remain a key investing theme. Stocks like Nvidia, Microsoft, and Apple are poised to benefit from AI adoption across industries.
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The "Magnificent Seven" mega-cap stocks drove most of the market's gains in 2023 and will continue to have an outsized impact on the indexes.
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Most economists expect GDP growth to slow to around 1%-1.5% in 2024. The Fed is projected to cut rates, supporting stocks.
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Historical precedents and the 2024 election cycle suggest another potentially strong year for equities, but small caps and banks face headwinds.