Early 2024 Financial Landscape: FBS Identifies Key Factors Influencing US Stock Market

KUALA LUMPUR, Malaysia, Jan. 23, 2024 /PRNewswire/ -- FBS, a leading global broker, underscores new opportunities for investors amid the historic highs of the US stock market in early 2024. Following the extraordinary rally of the US stocks at the end of 2023, public concerns about rising interest rates, economic growth slowdown, and tipping inflation went down, shaping exciting trading trends for Q1 2024.

As FBS financial market analysts report, the resurgence of enthusiasm for artificial intelligence (AI) drove the Nasdaq Composite to the most remarkable annual returns since 2009, further heating the tech-heavy stock market sector. In January 2024, the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average experienced remarkable gains.

In the upcoming months, factors such as inflation and interest rates, recession risks, and corporate earnings figures will continue shaping the financial market landscape in 2024. Several factors and events particularly solidify the upward tendencies in the US stock market:

• Driven by the falling energy prices, inflation is showing signs of moderation.
• As the Core Personal Consumption Expenditure (PCE) Price Index remained above the Fed's long-term target, the institution decided to maintain its federal funds target rate between 5.25% and 5.5% which fueled speculations about future moves, including rate cuts.
• The New York Fed's recession probability model estimated a 51.8% chance of a US recession within the next 12 months, sparking traders' concerns.
• The 2023 Q4 earnings season began in January 2024 with predictions of modest growth – 2.4% earnings and 3.1% revenue growth for S&P 500 companies.
• FBS analysts share the projections of the full-year S&P 500 earnings growth at 11.5% in 2024. However, optimism varies across sectors, where stocks of energy and communication services companies are leading. Consumer staples stocks traditionally have lower "buying" rates.

Looking ahead, FBS analysts warn traders of investment strategies focused on balanced and diversified portfolios, with attention to companies exhibiting solid fundamentals. Trading decisions should be full of patience and vigilance, and monitoring the Federal Reserve's actions and geopolitical situations remains critical. Investors are advised to avoid overreactions to short-term changes.

For more information about FBS's services, visit www.fbs.com.

Disclaimer: This material does not constitute a call to trade, trading advice or recommendation and is intended for informational purposes only.

About FBS

FBS is a licensed global broker with over 14 years of experience and more than 90 international awards. FBS is steadily developing as one of the market's most trusted brokers, with its traders numbering more than 27,000,000 and its partners exceeding 500,000 around the globe. The annual trading volume of FBS clients is over $8.9 trillion. FBS is also the Official Partner of Leicester City Football Club.