Stock Market Predictions 2024:  Stocks Finish Higher and Continue Rally on Fed Rate Reversal

Amidst the complex interplay of global economies, the U.S. stock market continues to exhibit a bullish vigor, shrugging off the potential implications of Federal Reserve policy changes and making new stock market predictions 2024. The S&P 500 has welcomed yet another day of gains, edging closer to its all-time closing high of 4,796.56 points. The Dow Jones Industrial Average has also fortified its position, adding 133 points to its record closing peak.

The package delivery firm FedEx (FDX) is one to watch as its shares have dipped slightly, with second-quarter earnings due after the closing bell. Analysts predict a healthy growth, expecting the bottom line to be at $4.20 per share, a 32% increase from the previous year, on revenues of $22.41 billion. As FedEx’s outlook always piques Wall Street’s interest, it serves as an accurate gauge for global business activity and consumer demand, guiding predictions for the holiday period and the start of the new year.

According to Commerce Department data, housing starts have sprung a positive surprise, leaping by 14.8% to reach an annualized rate of 1.56 million – the strongest reading of the year. However, permits for new construction, a significant demand indicator, have slipped to a rate of 1.46 million, narrowly missing the Street’s forecast of 1.48 million.

Boeing (B.A.) shares demonstrated pre-market dynamism, up by 1%, extending its six-month advance to around 24%. This surge comes as Boeing has clinched its first airplane sale to German carrier Lufthansa in nearly three decades.

The Atlanta Fed’s GDPNow forecasting tool highlights the economy’s resilience, projecting a current-quarter growth of around 2.6%. Coupled with an improving job market, investors view the Fed’s dovish stance as a pillar supporting earnings growth and driving further stock market performance well into 2024.

Top strategists at LPL Financial, Jeffrey Buchbinder and Adam Turnquist, caution about the potential for renewed upward pressure on interest rates owing to somewhat elevated inflation. But they remain optimistic, expecting stocks to flourish if the inflation aligns with the Fed’s target over 2024.

In the global landscape, oil markets are holding steady at two-week highs following B.P. Plc’s decision, backed by other shipping consortiums, to suspend cargo travel through the Red Sea and Suez Canal. This comes after a series of drone and missile attacks from Iran-backed Houthi rebels in Yemen. Brent crude futures contracts for February delivery were last seen 7 cents higher on the session at $78 a barrel.

Looking to the East, the Bank of Japan’s decision to maintain its ultra-loose monetary policy has prompted a 1.41% surge in the Nikkei 225, while the broader MSCI Asia ex-Japan index slipped 0.05% into the close of trading.As the world’s economies continue interweaving, the stock market predictions 2024 remains a dynamic space pulsating with opportunities and challenges.