WSt30_m hits record high! What about in 2024?

The WSt30_m index is building on yesterday’s gains when it already surged to a fresh record high!

This US stock index is currently carving out a bigger gap above the psychologically-important 37,000 level, having already surpassed its previous intraday peak of 36,971 registered on January 5th, 2022.

NOTE: The WSt30_m tracks the underlying Dow Jones Industrial Average index a.k.a. the Dow.

What drove the Dow to a record high?

This stock index had secured its highest-ever closing price yesterday (Wednesday, December 13th), after the Federal Reserve forecasted several rate cuts in 2024.

The prospects of US interest rates turning lower in the year ahead makes for a supportive environment for stock bulls.

The Fed’s latest policy signal makes this a year to remember for US stocks, with the likes of Apple and Nvidia also posting their respective all-time highs this calendar year, albeit with the help of the artificial intelligence frenzy that played out for most of 2023.

2024 outlook for US stocks

If the Fed rate cuts do materialise as markets currently forecast, that should translate into further gains for US stock markets overall.

Furthermore, 2024 is set to hold the next US Presidential Elections.

Every single presidential election year between 1980 – 2020 has seen the Dow Jones Industrial Average post an annual gain …

except for the following years:

• 2008 Global Financial Crisis
   
• 2000 dot com bubble
   
• 1984 surprise Fed rate hikes

As long as there aren’t any market shockers, or “black swan” events, that should see the WSt30_m post another annual gain for 2024, if history proves itself once more.

At the time of writing, Wall Street predicts another 5.3% in gains for the Dow over the next 12 months.

If such predictions ring true, that should see the WSt30_m breaching the 39,000 mark by this time next year.

Of course, as recent years have demonstrated, market predictions can be anything but simple and straightforward.

Hence, such a rosy outlook for 2024 still requires constant vigilance by investors and traders worldwide and guard against risks that may blindside equity bulls.