The S&P 500 May Continue to Rally in 2024: 2 Growth Stocks to Buy Now
The S&P 500 index posted a solid return of 24% in 2023. While many Wall Street analysts are now projecting slower economic growth in 2024, the possibility of a recession seems to be quite low. Coupled with improving earnings projections for the S&P 500 stocks, analysts now expect the index to gain 8% to 9% in 2024 -- a little lower than the index's long-term historical average annual return of 10%.
Traders do not expect the Federal Reserve's interest rate cuts to start until May 2023 due to stronger-than-expected economic data and indications of a continued battle with inflation. However, once the central bank starts cutting rates, it is expected to continue to do so five times in late 2024. Subsequently, the stock market and the S&P 500 will most likely start rallying meaningfully in the latter part of 2024.
That's why now may be a good time to start taking up small positions in growth stocks such as Nvidia (NASDAQ: NVDA) and Palantir Technologies (NYSE: PLTR), which are expected to grow faster than the overall market.
Source Fool.com
