2024-01-30 05:20:00 ET
Growth stocks have been in fine form on the market over the past year thanks to numerous reasons, including cooling inflation, the Federal Reserve's pause on interest rate hikes, and a resilient economy. That momentum looks set to continue in 2024.
Investment research firm Fundstrat's Tom Lee predicts that the S&P 500 index will jump as much as 30% this year from 2023 levels. The Nasdaq-100 index is also seeing forecasts of robust gains in 2024 following the impressive 54% jump it clocked in 2023. That's because the Nasdaq-100 has historically averaged a 24% gain in the year which follows a year with 40%-plus gains, according to fintech broker Capex.com.
The market could keep soaring, as the Fed is anticipated to cut the interest rate four times this year, according to Goldman Sachs , as inflation hits the central bank's target of 2%. This could pave the way for more gains at Palantir Technologies (NYSE: PLTR) following the growth stock's red-hot 116% surge in the past year.
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