The Nasdaq-100 Technology Sector index was in roaring form last year as it gained nearly 54% thanks to a variety of tailwinds, including the growing adoption of artificial intelligence (AI), cooling inflation, and a resilient economy. And the good part is that the index could keep heading higher in 2024.

Historical data collected by fintech brokerage firm Capex.com suggests that a year in which the Nasdaq-100 clocks a gain of more than 40% is followed by another year of gains -- barring 1999, when the dot-com bubble was about to burst. These trends indicate that the Nasdaq-100 could jump 24% this year from 2023 levels.

Wall Street is also positive about the Nasdaq-100's prospects, predicting that the index could land between 17,000 and 18,500 this year. Using the higher end of the estimate, that would be a 10% jump from current levels. While past performance is definitely not an indicator of how the market could perform in the future, tailwinds such as a potential cut in interest rates by the Federal Reserve could send the Nasdaq-100 even higher.

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Source Fool.com