The highest level of the S&P 500 index has been revised up again, and Wall Street has ushered in a more optimistic outlook. The move, which reflects a surge, has seen the S&P 500 exceed Wall Street strategists' year-end targets in less than two months. The two strategists have successively raised their 2024 outlook, further strengthening the market's optimism.
Goldman Sachs last week raised its year-end target to 5,200 from 5,100, while UBS followed suit. The strategy team at UBS Investment Bank expects the S&P 500 to reach 5,400 this year, up nearly 8% from previously.
UBS's Jonathan Gorubb-led team said that despite optimism about the future, the current view of the market does not seem to be optimistic enough.
The two investment banks have also expressed a more optimistic view than ever on the outlook for corporate earnings this year, which is why they believe there is still room for further growth. S&P 500 companies are expected to grow their fourth-quarter earnings, according to Factset2%, compared to 1 a month ago9%。Analysts expect the S&P 500 to grow by 10 percent for the full year of 20249%。
David Costin, chief U.S. strategist at Goldman Sachs, said earnings growth would be the main driver for further growth in 2024. He noted that a more optimistic view of the earnings outlook stems from rising expectations of U.S. economic growth and large corporate profit margins.
Specifically, Goldman Sachs' earnings growth stems from large corporations, particularly in the technology and communications services sectors. They believe that the technology and communications services sectors, which include five of the Grand Seven, will lead earnings growth in 2024.
Overall, the outlook is encouraging, and Wall Street remains optimistic about the future despite the significant gains that have been made so far. Investors can pay close attention to the market dynamics and formulate investment strategies accordingly.
HTFX analysts believe that although there may be some volatility, overall, there is still potential and investors should remain cautiously optimistic and seize investment opportunities.