Big-Tech Rally Continues: S&P 500 Could Return 11% In 2024
Portfolio Pulse from Neil Dennis
Analysts predict an 11% return for the S&P 500 index in 2024, buoyed by lower interest rates and a soft landing for the economy. The SPDR S&P 500 ETF Trust (SPY) has mirrored the index's performance, with an 18-19% increase in 2023. DataTrek suggests the Russell 3,000 index for those seeking more exposure to lower rates, highlighting the Schwab Fundamental U.S. Small Company Index ETF (FNDA) as an option. Despite large moves in big tech stocks, DataTrek sees potential for further gains in 2024, especially for Nvidia (NVDA), Alphabet (GOOGL), Apple (AAPL), and Microsoft (MSFT), which could significantly contribute to the S&P 500's performance due to their substantial market cap weight.
November 29, 2023 | 6:19 pm
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POSITIVE IMPACT
Apple is among the large tech stocks that could fuel the S&P 500 rally in 2024, with its performance not yet overextended.
AAPL's mention as a key contributor to the S&P 500's potential rally in 2024 suggests a positive outlook for its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
FNDA, which tracks U.S. small caps, could attract investors seeking exposure to lower rates, as it is currently up only 7.1% compared to the S&P 500.
FNDA is mentioned as an alternative investment to gain exposure to lower rates, which could increase its attractiveness if the economic conditions align with predictions.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Alphabet's recent rallies are seen as sustainable, with potential for continued growth in 2024.
GOOGL is highlighted for its sustainable rallies and is expected to contribute significantly to the S&P 500's performance, indicating a positive short-term impact.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Microsoft reached a record high and is expected to continue its upward trend, supporting the S&P 500's potential new all-time high in 2024.
MSFT's recent record high and its significant weight in the S&P 500 suggest that its continued performance could have a positive short-term impact on its stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Nvidia is expected to continue its rally in 2024, with its recent performance not considered overextended.
NVDA is specifically mentioned as having potential for further gains, which could positively impact its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
SPY, which tracks the S&P 500, is expected to benefit from the predicted 11% index return in 2024, following an 18-19% increase in 2023.
SPY directly tracks the S&P 500, making it highly relevant to the index's performance. The positive outlook for the S&P 500 in 2024 suggests a similar trajectory for SPY.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90