2024 Stock Market Forecast: Bullish Outlook and Catalysts for Higher Gains

Tom Lee, head of research at Fundstrat Global Advisors, predicts that the S&P 500 will rally to 5,200 by the end of 2024, driven by falling inflation, lower interest rates, and improved financial conditions. He expects the U.S. economy to avoid a recession in 2024, despite a weak labor market in the first half of the year. Lee anticipates a rise in consumer income, a drop in mortgage rates, and increased demand from American corporations. He also foresees the S&P 500's price-to-earnings ratio expanding and an 8.3% growth in earnings-per-share. Lee's forecast is more bullish than the average prediction of other strategists.