S&P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 'Favored Sectors' For Next Year
Portfolio Pulse from Surbhi Jain
Wells Fargo Investment Institute has set a target for the S&P 500 Index at 4600-4800 by the end of 2024, expecting global earnings to face challenges early in the year but to rebound later. They favor large-caps over mid-caps and small-caps, and have a target for the MSCI EAFE Index at 2000-2200. Wells Fargo's favored sectors for 2024 are Health Care, Industrials, and Materials, while Consumer Discretionary and Real Estate are viewed unfavorably. ETFs tracking these indices and sectors are highlighted as investment options.
December 26, 2023 | 7:37 pm
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NEUTRAL IMPACT
EFA, tracking the MSCI EAFE Index, may be impacted by Wells Fargo's target for the index and their preference for developed-market equities.
EFA's performance is closely tied to the MSCI EAFE Index, which Wells Fargo expects to target 2000-2200 by year-end 2024.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
IVV, which tracks the S&P 500, may be influenced by Wells Fargo's index target for 2024.
IVV is another ETF that tracks the S&P 500, making it susceptible to the same market projections as SPY.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Wells Fargo's S&P 500 target range may affect SPY as it tracks the S&P 500 Index.
SPY directly tracks the S&P 500 Index, so any projections about the index's performance will be highly relevant to SPY's price movement.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
VOO's performance is tied to the S&P 500, and Wells Fargo's target may impact its price movement.
VOO, like SPY and IVV, will be directly affected by any changes in the S&P 500 Index as it is designed to track that index.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Wells Fargo has provided a market outlook for 2024, favoring large-caps and specific sectors, which may influence investor sentiment towards WFC.
As the source of the market outlook, Wells Fargo's own stock may see some impact based on how investors perceive their analysis and sector picks. However, the report is more about the market in general than about WFC specifically.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
XLB could see an uptick as it represents the Materials sector, one of Wells Fargo's favored sectors for 2024.
XLB benefits from being in the Materials sector, which Wells Fargo has identified as a preferred sector for the upcoming year.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
XLI, tracking the Industrials sector, may see positive effects from being highlighted as a favored sector by Wells Fargo.
XLI is an ETF that tracks the Industrials sector, which is expected to perform well according to Wells Fargo's sector preferences for 2024.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
XLV could benefit from being in one of Wells Fargo's favored sectors for 2024, Health Care.
XLV tracks the Health Care sector, which is one of the favored sectors according to Wells Fargo's 2024 outlook, potentially leading to increased investor interest.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80