FILE=Traders work on the floor of the New York Stock Exchange Wednesday, March 20, 2024. U.S. markets are far outpacing their global counterparts in 2024, continuing a decades-long trend of strong growth compared with the rest of the world. NEW YORK — U.S. markets are far outpacing their global counterparts in 2024, continuing a decade-long trend of strong growth compared with the rest of the world.
The U.S. economy has historically been far more consumer-driven than counterparts in Europe and Asia, helping to fuel steady earnings growth for U.S. companies over a longer period of time. Stock buybacks have also steadily increased over the last few decades, which tends to inflate earnings. Also, big tech companies typically dominate the movement of the S&P 500 and their profits have skewed growth for the benchmark index.
“To the extent that consumer spending and corporate profits are more important to investors than how soon, and how many times, the Fed will cut rates, then stock prices can move higher on this report,” said Chris Zaccarelli, chief Investment officer for Independent Advisor Alliance.