S&P 500 Rebound in 2023 Could Fuel Another Big Year for Stocks in 2024 if Fed Cuts Rates
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The S&P 500 is up 22.8% in 2023, a sharp reversal from its plunge into a bear market in 2022. Historically, years when the index bounces back tend to be followed by another positive year.
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Experts predict the Fed could lower interest rates 5 times in 2024, which could further fuel a stock market rally.
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Based on 9 historical instances, the average S&P 500 gain the year after a rebound is 15.1%. Rate cuts could drive an even larger 2024 return.
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Stocks like Redfin, Nvidia, Microsoft, OpenAI, and Palo Alto Networks may benefit from declining rates and AI momentum.
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Berkshire Hathaway shares have historically doubled the S&P 500's returns, making them a safer bet if rates decline.