Stock Rally Poised to Continue in 2024 on Rate Cuts, Earnings Growth Despite Geopolitical Uncertainty
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Stock markets could continue rallying in 2024 despite geopolitical risks due to expected interest rate cuts and strong company earnings forecasts.
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Breadth of the market rally has expanded beyond big tech stocks, with 90% of stocks above 20-day moving averages before Thanksgiving.
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FactSet forecasts 8.1% year-over-year earnings growth for S&P 500 companies in 2024.
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Declining bond yields historically benefit stock markets; 10-year Treasury yields are down 50 basis points in past month.
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Major European banks and energy companies expected to return significant capital to shareholders through buybacks in 2024.