The S&P 500 Index made history in 2024 with a record-breaking surge of 23%, the best back-to-back run since the 1990s. Contrary to expectations, the index far exceeded modest predictions from Wall Street forecasters. Last year’s rally was on track to be its last, with even the most optimistic targets already blown past.
By early 2024, strategists at major firms such as Bank of America, Deutsche Bank, and Goldman Sachs predicted a lackluster performance for the US stock market. However, an unexpected tech boom fueled by AI breakthroughs led to a sustained rally in equities. As interest rates began to fall under the Federal Reserve’s guidance, analysts initially thought Treasuries would give stocks a run for their money.
Instead, the S&P 500 Index continued its remarkable ascent, defying even the most bearish predictions. The surprise success has left investors and forecasters alike wondering what other surprises the year may hold.
Source: https://www.bloomberg.com/news/articles/2024-12-29/s-p-500-s-2024-rally-shocked-forecasters-expecting-it-to-fizzle