The post S&P 500’s Rollercoaster Ride: What Lies Ahead for Investors in 2024 appeared on BitcoinEthereumNews.com.

The S&P 500, a bellwether of the U.S. stock market, has been on a rollercoaster ride in 2023, with its ups and downs mirroring the fluctuations in investor sentiment. S&P 500’s 2023 journey In 2023, the S&P 500 experienced significant volatility, but it ended the year with an 18% gain. This performance was far from linear, characterized by dramatic swings driven by various factors. First-Half Surge: The S&P 500 made a strong comeback in the year’s first half, rebounding from bear market lows. Signs of economic resilience, better-than-expected corporate earnings, and growing enthusiasm around artificial intelligence fueled this surge. Second-Half Decline: However, the second half of the year saw a reversal of fortune. The index faced three consecutive monthly declines from August to October due to renewed recession fears and hawkish commentary from the Federal Reserve, indicating prolonged high-interest rates. Late-Year Rally: The rollercoaster took another sharp turn towards the end of the year, as the S&P 500 recorded four consecutive weeks of gains by late November. Positive economic data, including a low October inflation reading, contributed to this resurgence, potentially signaling an end to the Fed’s rate-hiking campaign. Historical trends and forecasts The recent four-week win streak in the S&P 500 is a relatively rare occurrence, having happened only 10 other times in history. Historical data suggests that such streaks are often followed by further upward momentum, with an average return of 16.3% during the 12-month period following these streaks. Moreover, this trend resulted in a positive return 80% of the time, according to Carson Group. Furthermore, when analyzing the impact of inflation and interest rates on the S&P 500, data from JPMorgan Chase indicates that after the end of a rate hike cycle, the index has historically returned an average of 17.6% during the subsequent 12-month period, with…

---

Filed under: News - @ December 2, 2023 5:16 pm