Stocks Face Uncertainty After Banner 2023

• S&P 500 up 4% in 2024 after surging 24% in 2023, confronting investors on whether strong growth can continue driving stocks higher even with less Fed easing • Expectations of Fed rate cuts in 2023 sent stocks soaring, but recent robust economic data suggests economy may be too hot for Fed to cut rates without risking inflation • Jobs report showed stronger than expected growth, evaporating hopes of a near-term Fed rate cut; futures now show only 20% chance of March cut, down from 50% • Earnings expected to jump nearly 10% in 2024, optimistic outlook could power further stock gains along with AI potential • Sustained strong growth poses risk of inflation rebound and higher interest rates, which could increase stress on areas like commercial real estate