Several Wall Street banking giants are predicting blue skies for US stocks – at least until the end of 2024.
Mike Wilson, Morgan Stanley’s chief US equity strategist tells Bloomberg said he expects the S&P 500 to return to all-time highs by the end of the year.
But Wilson warns that stocks will likely see a period of consolidation as a new year unfolds.
“We deal with the FOMO (fear of missing the season). People have to act in the next two months. Lots of things happening here.
I could see some kind of letdown after the election, a clearing event, but then the reality sets in that we’re going to have some fiscal consolidation next year… In my opinion, that has to happen, and it will happen. create uncertainty.”
The Morgan Stanley CEO also details his year-end target for the S&P 500.
“I think we could see 6,000 [points] possibly in some kind of clean-up event. There is not much consternation, people are feeling good about things.
But I think it’s very difficult for us to get past 6,000 to 6,100 [points] in any scenario, because you’re so concerned about the valuation. And I don’t see growth accelerating in a way that would justify higher numbers for 2025.”
Meanwhile, JPMorgan Chase’s head of US market intelligence, Andrew Tyler, said believes the stock market will see bigger rallies in the last two months of the year than what happened eight years ago after Donald Trump won his first presidential election.
“I expect returns in 2024 to be greater than those in 2016.”
In 2016, the S&P 500 rose by more than 5% in the last two months of the year.
Citi’s outlook for the S&P 500 is in line with JPMorgan and Morgan Stanley’s forecasts. Scott Chronert, the bank’s US equity strategist, believes the stock market could rise as much as 6,100 points before 2024 ends. reports Barrons.
“We reiterate our position that investors should tactically abandon a post-election rally if the S&P 500 exceeds our year-end 6,100 bull case target, which is roughly equivalent to a +5% index gain from Election Day.”
At Friday’s close, the S&P 500 is trading at 5,870 points.
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