History Suggests the Nasdaq Could Surge in 2024: A Magnificent Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Doubles
The Nasdaq-100 Technology Sector index was in fine form last year with impressive gains of 67%. This was driven by a terrific surge in tech stocks that found favor with investors once again on the back of cooling inflation, the pause in the Federal Reserve's rate hikes, and new catalysts such as artificial intelligence (AI).
A closer look at past trends indicates that the Nasdaq-100 could have another stellar year in 2024. Since its inception in 1985, the Nasdaq-100 has seen only seven down years. What's more, the index has tended to bounce back impressively in the two years following a down year. For example, it jumped 53% in 2009 and 19% in 2010 following a sharp decline of 42% in 2008.
We have already seen that the index soared impressively last year, and that followed a steep drop of 33% in 2022. While past events can't always tell us how the future may pan out, there are indications that the Nasdaq could keep surging in 2024. For instance, the Federal Reserve is expected to cut interest rates this year on account of cooling inflation.
Source Fool.com
