The Nasdaq-100 Technology Sector index delivered an outstanding performance in 2023 with an impressive gain of 68%. Tech stocks found their mojo once again thanks to favorable economic developments, as well as the artificial intelligence (AI) gravy train.

The good news is that the Nasdaq-100 seems set to soar higher in 2024, thanks to potential interest rate cuts by the Federal Reserve, slim chances of a recession, the cooling inflation, and the booming adoption of AI that's likely to help some big tech names sustain their fantastic growth. It is worth noting that the Nasdaq-100 index has experienced only seven down years since it was launched in January 1985.

What's more, the index tends to bounce back strongly in the years following a down year. For instance, the Nasdaq-100 was up 53% in 2009 and 19% in 2010 following a 42% slide in 2008. A similar trend was seen in 2019 and 2020, when the index jumped 38% and 47%, respectively, following a 1% pullback in 2018. As such, there is a strong likelihood of the Nasdaq-100 heading higher in 2024, especially considering the economic tailwinds mentioned above.

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Source Fool.com