The S&P 500 posted its fourth consecutive weekly gain, bringing the index up nearly 19% so far this year and less than 1% from its 2023 peak. Economists at UBS analyze the prospects for equities.
Risks persist despite stock market optimism
Our Base hypothesis is that the S&P 500 index continues to rise moderately in 2024 and ends the year around 4,700 points.
However, an unusually wide range of risks could still spoil the outlook. Although inflation is declining, markets could become uneasy about any slowdown in this process. This could heighten fears of a hard landing in the US as the Fed keeps rates higher for longer. Wars between Russia and Ukraine and between Israel and Hamas may trigger volatility. And the US presidential elections will take place against a backdrop of increasing dysfunctionality in the budget process.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
