S&P 500 Hits New High in 2023, But Growth Expected to Slow in 2024
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The S&P 500 hit a new record high above 5,000 points in 2023, driven by economic resilience and AI excitement. Analysts see 9% more upside in the next 12 months.
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Revenue and earnings growth for S&P 500 companies is expected to accelerate in 2024 compared to 2023, especially in tech and communications services.
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U.S. economic expansion slowed in 2023 but is projected to further decelerate to 1.6% GDP growth in 2024. Slower growth could negatively impact stocks.
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The Fed is expected to cut interest rates several times in 2024, which could boost economic growth and support stock prices.
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Over the long-term, the S&P 500 has rewarded patient investors with 10%+ annual returns. Regular contributions to an index fund has been a winning strategy.