S&P 500 Stock Markets: Forecast, Analysis and Outlook for 2024

S&P 500 Stock Markets: Forecast, Analysis and Outlook for 2024

According to a report from finanzmarktwelt.de, the stock markets have shown an impressive performance so far this year. The S&P 500 Index is up 19.7%, with a 9% increase recorded in November alone. Nevertheless, the year-end rally has stalled somewhat as traders have shifted away from the tech giants and into other stocks. This development is due to hopes of falling interest rates, cooling inflation and the resilience of the US economy.

Experts expect a first interest rate cut in March, followed by a total of 125 basis points over the course of the year - in the euro area even 150 basis points. However, some Wall Street figures warn that these hopes may be overblown. Despite lower earnings expectations for the fourth quarter, stock markets continue to rise, further increasing already high valuations. The market ignores the reasons for the decline in inflation and the likely end of the interest rate cycle.

From a technical chart perspective, the S&P 500 is trading at important resistance at 4,600 points. If the leading index does not break above this resistance soon, the probability of a setback increases. The extremely bullish mood and the overbought situation in the S&P 500 are the first warning signs of impending consolidation.

It remains to be seen whether a major correction is imminent or whether this is just a temporary consolidation. Investors should continue to monitor developments closely to be prepared for possible changes.

It should be noted that CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. Investors should therefore be aware that past profits are no guarantee of future success and should only trade with funds they can afford to lose.