BMO Capital Markets chief investment strategist discusses why he raised his year-end S&P 500 target during an interview on ‘Making Money.’ The Dow Jones Industrial Average reached a new milestone by crossing 40,000 for the first time but closed just below that mark. This achievement comes as investors are pleased with strong earnings reports and a slight decrease in consumer inflation. It will be the third 1,000 point milestone reached in 2024, with the Dow seeing gains of about 6% so far this year.
Investors are hopeful that inflation may decrease enough for the Federal Reserve to consider cutting interest rates at least twice this year. Notable contributors to the Dow’s performance since reaching 30,000 include Goldman Sachs, Microsoft, UnitedHealth, and Caterpillar. Despite the Dow’s achievements, both the S&P 500 and Nasdaq have been outperforming the index, with both reaching new record highs as well. The S&P 500 and Nasdaq have seen gains of about 11% this year as 77% of companies have exceeded profit estimates. Companies like Google and Nvidia are also seeing record-high stock prices, with Nvidia’s highly anticipated earnings report scheduled for May 22nd. This strong performance across the board reflects a positive outlook for the stock market in 2024.