After a bumpy first few weeks of January, the bulls finally took over this week, sending the S&P 500 into a new all-time high and into the green for the year. For the week, the S&P 500 gained 0.95% and is now up 2.18% on the year.
Interestingly, this isn’t your average new all-time high either. The S&P 500 had not posted a new all-time high in two years, since January of 2022. That was one of the longest streaks ever and the longest in over ten years. It goes to show how tough and volatile the last few years have been for US stocks. Here are some stats from marketwatch.
“Friday’s move also broke a streak of 512 trading days without a fresh record closing high for the S&P 500, ending the longest such stretch since the 1,375 trading-day streak from October 2007 to March 2013, according to Dow Jones Market Data (see table below).”
We are Forecasting S&P 500 up 10% in 2024
The S&P 500 rebounding out of some early weakness in January is another positive signal for US stocks in 2024. This upward movement in stocks is consistent with our forecast for the year. I am looking for the S&P 500 to gains around 10% this year for two primary reasons.
- S&P 500 has upward momentum from 2023.
- Stocks tend to do well in presidential re election years.
Here’s a few more reasons I am optimistic on 2024.
- Global economy on pace for solid growth in 2024.
- US economic growth rate will trail global growth rate but still remain solidly positive.
- Corporate earnings set for solid expansion.
Here’s a link to the full forecast for the year if anyone want to review.
US Stocks are Positive for 2024
After the good week most leading indices are in the green for the year.
NASDAQ 100 (QQQ): +4.62%.
S&P 500 (SPY): +2.18%.
Dow Jones Industrial Average (DJIA): +0.39%.
Vanguard Global Stock Market (VT): +0.44%.
Q4 Earnings Season about to Take Flight
Looking forward, the S&P 500 has a few action packed weeks ahead of it. In the next two weeks we will see earnings reports from the largest and most influential companies in the world. That includes Amazon, Apple, Google, Nvidia, Palantir and Tesla.
I am not expecting any blowout results or forecasts, but overall I am expecting to see good news and positive share price movement. I think Q4 earnings season will be a positive catalyst for the broader stock market.
Stocks are off to a decent start this year. Let’s look for some more gains in the next few weeks driven by a positive earnings season.
I’ll be back with another update next week – have a great day!
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.
