From Nasdaq:

Analysts predict a stronger rise in U.S. corporate earnings for 2024. Despite worries of slowed economic growth, S&P 500 earnings should increase by 11.1%, supporting high stock valuations. The market master trade level requires strong growth for it to be maintained.

Seemingly, declining rates spurred a sharp year-end rally. The Federal Reserve’s intentions to cut interest rates in 2024 contributed to the first record high close for the Dow Jones since January 2022.

“The market trading where it is at current levels demands earnings to show strong growth next year,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

The U.S. government confirmed that economic growth accelerated last quarter. Gross domestic product increased at a 4.9% annualized rate. This is a strong positive for businesses in 2024, thanks to cooling inflation.

While others are cautious of the assumed positives, the Fed’s dovish pivot has only reinforced the argument for the dollar to weaken.

Further, Wall Street is optimistic for how artificial intelligence could help companies with results and outlooks for the following year. Since the second quarter of 2023, a rebound began for earnings and is expected to follow for the rest of the market in 2024.

S&P 500 quarterly earnings performance since Q3 2020 indicate a strong possibility for gains in 2024. (([email protected])



Read more: US profit growth to accelerate in 2024 despite economy risks