FX.co ★ Bank of America forecasts S&P 500 to reach record 5,000 in 2024

Analysts at Bank of America (BofA) predict that the large-cap stock index S&P 500 could conquer a new peak at 5,000 in 2024. The catalyst for the explosive jump will be the adjustment of US companies to the elevated funds rate of the US central bank and economic upheavals.

Amazingly, the S&P 500, known as the most accurate barometer of the US stock market’s health, has benefitted from economic woes. It is also immune to jitters in global financial markets. On the contrary, the index owes its strength to such troubles.

BofA experts are bullish about Wall Street’s dynamic in 2024. Interestingly, the optimistic forecast is not based on the likelihood that the Federal Reserve might venture into rate hikes. Analysts give priority to the Fed’s successful struggle against inflation which has ensured steady results.

Bank of America points out that the US economy has survived a series of tough challenges and has won this battle. The US economy has proved its power to the world. In this context, there is a fair chance that the S&P 500 will be able to settle at 5,000 points in late 2024. So, analysts expect the index to rise by 10% next year.

Economists from Goldman Sachs and Societe Generale SA are on the same page. They also believe that the S&P 500, the best gauge of large-cap US equities, is firmly on its way to new record highs. Experts at these lending institutions reckon that stocks will outperform Treasuries in terms of yield in the year ahead.