A Stellar 2023 For S&P 500, Yet 2024 Looks Brighter With Prospects Of Interest Rate Reductions By Fed

Ahead of 2024, investors exhibit a rising sense of optimism, building on the back of a highly profitable 2023, a recent Bloomberg survey reveals.

2023 was a year of robust growth in the stock market. The S&P 500 saw a growth of 20%, while Nasdaq 100 surged by 46%. Nvidia Corp. NVDA, one of the leading players in the Artificial Intelligence (AI) industry, experienced a tremendous rise in its share price, soaring by a whopping 220%. Furthermore, tech behemoths like Microsoft Corp. MSFT, Amazon.com Inc. AMZN, and Meta Platforms Inc. META also witnessed significant jumps of 56%, 75%, and 170% respectively, reported Bloomberg.

The Bloomberg Markets Live Pulse survey reveals that 63% of 595 participants expect 2024 to bring even stronger returns for personal investments. This optimism is primarily driven by the anticipation of the Federal Reserve reducing interest rates, which is expected to trigger rallies in the stock and bond markets.

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AI emerges as the most promising trend for long-term investment, as per 67% of the respondents. However, concerns over inflation and escalating living costs loom large, with investors viewing them as potential threats to their financial stability in 2024.

Big Tech investments in 2024 elicit mixed reactions from respondents. 45% view it as a growth bet and 16% see it as a haven. Contrarily, 39% believe the stocks are overvalued. Despite the impressive tech returns in 2023, some experts advise caution when investing in the tech sector in 2024.

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