After a powerful fourth quarter rally, equity investors were a bit skittish at the start of 2024. But they have since driven the US S&P 500 index to new highs. More gains lie ahead. Stock markets are in a very sweet spot and we expect they will make more new highs in 2024. This can be chalked up to moderating but continued economic growth, cooling inflation and upcoming central bank cuts to interest rates. But we also point to these key reasons: The positive earnings outlook.
With US earnings season under way, companies look well-positioned to increase their profits in a slowing (though still resilient) growth environment in 2024. US large cap corporates have already gone through an earnings recession. Nine of the 11 major sectors in the S&P 500 reported negative earnings growth for three consecutive quarters in 2022-2023. Companies have emerged with leaner cost structures and stronger balance sheets. When rates were low, companies sensibly extended the maturities on their debt
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Source: eurogamer - 🏆 68. / 61 Read more »