What are the stock market trends for 2024?
Big Money participants forecast a 12% jump in earnings per share for the S&P 500 in 2024, slightly ahead of consensus forecasts for an 11% increase.
The updated Dow Jones price prediction for the next 5 years is for the index to trade around 45,000 points. Long Forecast predicts Dow Jones to trade above 40,000 points in the second half of 2024 and and advance up to 44,000 points by the end of the year. This is the most bullish Dow Jones forecast for 2024.
Analysts expect overall S&P 500 earnings to rise 10.4% in 2024, LSEG data showed. But stocks are also at high valuation levels. The S&P 500 trades at a forward price-to-earnings ratio - a commonly used metric to value stocks - of 20.9, well above the index's historic average of 15.7, according to LSEG Datastream.
In the long-term, we foresee a target of 26,500 for December 2025. The market estimates a stable earnings growth of 12 to 14% for the next 2-3yrs in anticipation of the average 7% GDP growth of India.
The Indian stock market reached an all-time high on June 22, 2024, with the BSE Sensex touching 65,500 points and the NSE Nifty 50 crossing 19,600 points. This milestone was driven by strong inflows from foreign institutional investors (FIIs), robust corporate earnings, and positive economic data.
2024 is likely to see the peak effects of monetary policy tightening and reveal a weaker economy, which is no surprise. For investors, that just means that 2024 could turn out to be the year for fixed income to shine. Source: Bloomberg, BMO GAM, as of October 31, 2023.
Traders work on the floor of the New York Stock Exchange on May 16, 2024. Wall Street is buoyed by hopes the Federal Reserve will pull back on its restrictive monetary policy after data showed inflation is beginning to ease.
| Month | Open, $ | Minimum / Maximum, $ |
|---|---|---|
| December 2024 | 45370 | 43694/50272 |
| January 2025 | 46983 | 45473/52319 |
| December 2025 | 56472 | 55392/63730 |
| January 2026 | 59561 | 52495/60397 |
BlackRock. Highlights: 5.2% 10-year expected nominal return for U.S. large-cap equities; 9.9% for European equities; 9.1% for emerging-markets equities; 5.0% for U.S. aggregate bonds (as of September 2023). All return assumptions are nominal (non-inflation-adjusted).
S&P 500 Forecast 2025: Morgan Stanley Analyst Changes Tune to Bullish. A new S&P 500 forecast is surprisingly optimistic at 5,400. This comes from Morgan Stanley's Mike Wilson. The analyst was previously more bearish with a 4,500 prediction.
How much will S&P be worth in 10 years?
The Magnificent 7 Stocks
The group comprises Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla, and spans four sectors: technology services, electronic technology, retail trade, and consumer durables.
| Company and ticker symbol | Performance in 2024 |
|---|---|
| Nvidia (NVDA) | 149.5% |
| Vistra (VST) | 123.2% |
| Constellation Energy (CEG) | 71.3% |
| General Electric (GE) | 55.9% |
- Celestica (NYSE:CLS) is a supply chain electronics manufacturing company. ...
- SkyWest (NASDAQ:SKYW) is up 172% in the past year but for the right reasons.
- Sterling Infrastructure (NASDAQ:STRL) has been delivering stellar returns.
S&P 500 earnings to increase 9.3% compared to a year ago. S&P 500 earnings growth to accelerate in the second half of the year. Full-year S&P 500 earnings growth of 11.4% in 2024. Full-year S&P 500 revenue growth of 5% in 2024.
GDP growth in the United States is projected to be 2.6% in 2024, before slowing to 1.8% in 2025 as the economy adapts to high borrowing costs and moderating domestic demand.
If you're looking to invest for your future -- five, 10, or 40 years from now -- now is as good a time as ever to buy stocks. Despite ongoing recession fears, it's important to remember the market is forward-looking. Stock values are based on future expected earnings.
Key Takeaways. While holding or moving to cash might feel good mentally and help avoid short-term stock market volatility, it is unlikely to be wise over the long term. Once you cash out a stock that's dropped in price, you move from a paper loss to an actual loss.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
If gains broaden out and lift the S&P 500 Equal Weight Index, the main, cap-weighted benchmark could rise another 9% to 5,900 before 2024 closes out. In his most optimistic case, if mega-cap “exceptionalism” persists, the gauge could soar to 6,300 by the end of the year.
Will the Dow ever hit $50,000?
THE MIRACLE OF COMPOUNDING
Believe it or not, simply compounding at that rate would bring us to Dow 50,000 by 2028 and Dow 60,000 by 2031. Heck Dow One-Hundred Thousand would arrive early in the 2040s and Dow One Million in the 2080s!
Expectations of an earnings rebound in 2024 suggest earnings could continue to drive the market higher. While some valuations are stretched, there is still room for the market to grow if earnings estimates are met.
The Dow Jones Industrial Average reached a milestone Thursday that seemed unfathomable a year ago. The 30-stock benchmark broke above 40,000 for the first time.
Yet, though the line on the graph will be jagged, the market's overall arch will be upward, making Dow 50,000 by 2027 (if not earlier) extremely likely. David Sheaff Gilreath, a certified financial planner, is a 39-year veteran of the financial service industry.
Berger saw the Dow's future as reflecting its past; mathematically speaking, if the next 45 years were similar to what he had experienced, it would move the Dow to 116,200 in 2040. HulbertRatings.com recently noted that an 8% annualized rate of return would push the Dow past 100,000 in 2037.
