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<p class="has-drop-cap">The US stock market <a href="https://tokenist.com/after-novembers-rally-the-spx-is-only-2-below-its-2023-intraday-high/" rel="dofollow" class="deco-link">continued its 2023 momentum last month</a>, resulting in the best November for the three major indexes since 2020. Led by the ongoing <a href="https://tokenist.com/microsoft-leaves-google-behind-in-the-ai-race-market-responds/" rel="dofollow" class="deco-link">artificial intelligence (AI) craze</a>, Bank of America (BofA) expects this uptrend to extend into 2024, with one of the bank’s tools projecting an S&amp;P 500’s <a aria-label="surge to 5,300 (opens in a new tab)" href="https://in.investing.com/news/bank-of-americas-indicator-sees-sp-500-rallying-to-5300-by-the-end-of-2024-432SI-3921249" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">surge to 5,300</a> by the end of next year.&nbsp;</p> 
<h3 id="big-tech-accounted-for-over-80-of-sp-500-s-2023-gains">Big Tech Accounted for Over 80% of S&amp;P 500’s 2023 Gains</h3> 
<p>It’s safe to say that after a challenging 2022 marked by record-high inflation and rising interest rates, many anticipated a rebound in US stocks and other risk assets. However, the extent of the ensuing rally has surpassed many expectations.</p> 
<p>As of December 1, 2023, the S&amp;P 500 is 4,567, representing a year-to-date gain of 19.5%. The broader market index’s rally has been fueled by many factors: cooling inflation, less aggressive policy tightening by the Federal Reserve compared to 2022, and an incredibly resilient US economy.&nbsp;</p> 
<p>But the primary driver of this ascent has been the ongoing revolution in the technology sector led by generative artificial intelligence (AI) services, most notably ChatGPT.&nbsp;</p> 
<p>The impact of this boom has been so strong that the biggest seven stocks, also known as the Magnificent Seven, <a href="https://tokenist.com/70-of-the-stock-market-gains-this-year-come-from-the-magnificent-seven/" rel="dofollow" class="deco-link">accounted for</a> more than 80% of the S&amp;P 500’s gains this year. On the flip side, the remaining 493 constituents of the index rose by a mere 4%, indicating extraordinary market concentration.&nbsp;</p> 
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<h3 id="bank-of-america-s-sp-500-price-target-for-the-end-of-2024">Bank of America’s S&amp;P 500 Price Target for the End of 2024</h3> 
<p>The stock market’s remarkable momentum has been reflected across all three major indexes, not just the S&amp;P 500. In particular, the Dow Jones Industrial Average (DJIA) rose about 8% in November, representing its biggest monthly gain since October 2022. Similarly, the Nasdaq Composite surged 10%, marking its best month since July 2022.&nbsp;</p> 
<p>As such, all three indexes <a href="https://www.marketwatch.com/story/u-s-stocks-are-poised-to-record-their-best-month-in-over-a-year-thats-good-for-the-market-in-december-and-2024-dd769ac0?mod=home-page" target="_blank" aria-label="recorded their strongest November since 2020 (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">recorded their strongest November since 2020</a>.</p> 
<p>This bullish market sentiment also made market analysts more optimistic. Notably, Bank of America’s Sell Side Indicator (SSI) – a tool that indicates how much the bank’s experts suggest investing in the stock market – soared to 53.6% last month.&nbsp;</p> 
<p>At this level, the indicator signals an expected price return of 15% for the next 12 months, which would boost the S&amp;P 500 index to 5,300 by the end of 2024. Although the SSI is standing in “Neutral” territory, it is located much closer to a contrarian “Buy” signal than a “Sell.”</p> 
<p>While the bank’s strategists acknowledged that the market environment is yet to be “dominated by high conviction and euphoria,” sentiment is not the sole reason “to have a constructive equity outlook.”</p> 
<p>Compared to the SSI’s expected return, Bank of America’s official 2024-end price target for the S&amp;P 500 is 5,000, implying a 9.5% growth from the current level. Meanwhile, not all Wall Street giants are bullish on the stock market’s prospects for the next year, with JPMorgan <a aria-label="predicting a potential drop to as low as 4,200 (opens in a new tab)" href="https://www.reuters.com/markets/us/jpmorgan-strategists-see-challenging-backdrop-us-stocks-2024-2023-11-29/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">predicting a potential drop to as low as 4,200</a>.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em><strong>Do you agree with bullish analysts’ views that the S&amp;P 500 could rise as high as 5,000 next year? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/why-2024-could-be-a-massive-year-for-us-equities/">Why 2024 Could Be a Massive Year for US Equities</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Why 2024 Could Be a Massive Year for US Equities

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