From Nasdaq Inc.:



2023 saw the start of a new bull market fueled by megacap technology stocks, specifically the “Magnificent Seven” which led to a 24% gain in the S&P 500 index. The surge in the seven stocks raises questions about whether there is more room for gains in 2024. Despite this, all eleven S&P 500 sectors have shown significant gains, leading to an “everything rally.”

The surge in the tech stocks was unexpected due to concerns about inflation, interest rates, and the possibility of a recession. The Magnificent Seven have seen impressive gains in 2023, and their popularity is attributed to their exposure to high-growth technologies, strong cash flows, and excellent leadership. However, it is uncertain whether the rally led by these mega-cap technology stocks truly represents a broad-based bull market.

The market’s prospects for 2024 remain bright, especially if troubled segments of the economy can recover. While the Magnificent Seven have seen significant gains, the market may catch up to them in 2024 if these segments recover, creating a bullish scenario.



Read more: Expecting the ‘Everything Rally’ in 2024