In 2024, the S&P 500 index has achieved unprecedented heights, surpassing 5,400 points and representing a 13.8% increase since the beginning of the year. Despite numerous challenges such as high interest rates, geopolitical tensions in Israel and Ukraine, and inflation fears, the American market has shown remarkable resilience.
After experiencing a decline in April due to these challenges, Wall Street rebounded by 9%, following positive financial data from companies released during the first quarter of 2024. According to FactSet’s analysis of first-quarter results for companies in the S&P 500 index, 79% of these companies exceeded analysts’ profit forecasts, which is higher than the historical average of 74% over the past decade.
Noteworthy sectors that outperformed expectations include communication services and technology. Companies such as Meta, Google, Netflix, Nvidia, Microsoft, and Apple have driven profitability in these sectors. Analysts are optimistic about future opportunities in the market, with 55% of recommendations being to buy. FactSet projects that the S&P 500 index could reach an impressive 5,900 points next year, representing a significant increase of 9%.
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