S&P 500 Could Build On 2023's 24% Gain: Analyst Shares Key Data Supporting Continued Broader Market Performance
Portfolio Pulse from Shanthi Rexaline
Analyst Ryan Detrick from Carson Group suggests that the strong performance of small-cap stocks, as indicated by the Russell 2000 Index's 12.05% gain in December, bodes well for the S&P 500's future performance. Historical data shows that when the Russell 2000 has a strong December, the S&P 500 tends to perform positively in the following six months to a year. Gene Munster of Deepwater Asset Management predicts that the iShares Russell 2000 Growth ETF (IWO) will outperform the SPDR S&P 500 ETF Trust (SPY) in 2024, especially if the Federal Reserve reverses rate hikes and the economy avoids a hard landing.
January 01, 2024 | 4:55 pm
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POSITIVE IMPACT
The iShares Russell 2000 Growth ETF (IWO) is predicted by Gene Munster to outperform the SPDR S&P 500 ETF Trust (SPY) in 2024, particularly if smaller tech companies continue to gain momentum.
The positive outlook for IWO is based on historical performance trends of small-cap stocks and the prediction by a reputable analyst. The performance of small-caps is often seen as a leading indicator for the broader market, and the recent gains in the Russell 2000 Index support this view. However, the actual performance will depend on various market factors, including Federal Reserve policies and overall economic conditions.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see continued growth following the historical trend that a strong December in the Russell 2000 Index often leads to positive performance in the S&P 500. However, analysts caution that the mega-cap tech rally might temper, potentially affecting SPY's performance.
SPY's potential growth is supported by historical data linking the Russell 2000's December performance with the S&P 500's subsequent performance. However, the impact may be moderated by concerns over the sustainability of the tech rally and the broader economic outlook. The ETF's performance will be closely tied to broader market trends and the Federal Reserve's monetary policy decisions.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90