The S 500 advanced 27% over the past year due to stronger-than-expected economic growth in the U.S. and hopes that the Federal Reserve will soon pivot to interest rate cuts. Enthusiasm about artificial intelligence has also pushed the U.S. stock market higher.

However, some analysts are forecasting an S 500 correction in 2024, meaning they expect the index to fall at least 10% from its high. JPMorgan Chase has a year-end target of 4,200 on the index, implying a downside of 17% from its current level of 5,070, while Morgan Stanley's target of 4,500 implies a downside of 11%.

To be clear, not every Wall Street analyst predicts the index will decline. For instance, Goldman Sachs recently raised its year-end target to 5,200, which implies about 3% upside. However, some analysts are pessimistic because the S 500 now trades at 20.4 times forward earnings, which is well above its 10-year average of 17.7.

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Source Fool.com