Stock Market Outlook: S&P 500 Correction, Inflation Outlook, Fed Rates, and AI in 2024

The article discusses the potential for a stock market correction in 2023, driven by concerns over inflation and the Federal Reserve’s interest rate hikes. It highlights the possibility of a 20% drop in the S&P 500 index, as investors grapple with the impact of higher rates on corporate earnings and valuations. However, the article also explores the potential for a rebound in 2024, fueled by the widespread adoption of artificial intelligence (AI) technologies across various industries. It suggests that AI could drive productivity gains, boost economic growth, and ultimately support stock market valuations. The article emphasizes the importance of monitoring inflation data, Fed policy, and the pace of AI adoption in shaping the market’s trajectory over the next two years.

Source: https://markets.businessinsider.com/news/stocks/stock-market-outlook-sp500-correction-inflation-outlook-fed-rates-ai-2024-7