With the market setting records so far this year, it’s left many wondering what the outlook should be for the rest of the year. While the market can never be predicted with accuracy, here is how Wall Street sees it.
Analysts, overall, envision the median price target for the S&P 500 as 5,200, according to MarketWatch (2024).
- Oppenheimer Asset Management sees the S&P likely to close out around 5,500 this year, citing positive earnings trends and economic gains as the reason.
- Goldman Sachs, in its second upward revision in a year, upped its forecast to 5,200, seeing economic growth as above consensus (Goodkind, 2024).
- Morgan Stanley takes a more bearish view, citing 4,500 as the S&P target, way below the median estimate. The cause for concern is equity market sensitivity to bond yields, most notably the 10 Year Treasury which currently stands above 4% (Krauskopf, 2024).
We can not emphasize enough that forecasts are not guarantees of market performance. Any forward-looking statements are based on assumptions and should not be interpreted as guarantees of any sort.
It’s important to note that volatility may be on the horizon, as the Fed has hinted at interest rate cuts and 2024 is an election year. If you have questions about your portfolio and how market changes may have an impact, please set up a time to discuss.
-Judd
Sources
Goodkind, Nicole. (24 March, 2024). Goldman Sachs analysts say there’s still potential for more stock gains. CNN Business. https://www.cnn.com/2024/03/24/investing/401k-sp-500-markets-goldman-boost/index.html
Krauskopf, Lewis. (19 March, 2024). Reuters. US yields nearing level that could pressure stocks, Morgan Stanley says. https://www.reuters.com/markets/us/us-yields-nearing-level-that-could-pressure-stocks-morgan-stanley-says-2024-03-18/
Wang, Isabel. (25 March, 2024). Wall Street revamps 2024 S&P 500 targets after record-setting stock-market rally. MarketWatch. https://www.morningstar.com/news/marketwatch/20240325111/wall-street-revamps-2024-sp-500-targets-after-record-setting-stock-market-rally