Stock Rally Could Push S&P 500 to 5,500 by 2024, UBS Forecasts Amid Cooling Inflation and AI Investment Boom

According to UBS, the S&P 500 could surge to 5,500 by 2024, driven by cooling inflation and a boom in artificial intelligence (AI) investment. The forecast comes as the stock market has rallied this year, with the S&P 500 up over 15% year-to-date. UBS expects the Producer Price Index (PPI) to continue declining, signaling easing inflationary pressures. Additionally, the firm anticipates a surge in AI investment, which could boost productivity and corporate earnings. UBS cites the rapid adoption of AI tools like ChatGPT as a catalyst for this investment boom. The forecast highlights the potential for further stock market gains, fueled by moderating inflation and the transformative impact of AI on various industries.

Source: https://markets.businessinsider.com/news/stocks/stock-rally-sp500-5500-ubs-forecast-inflation-ppi-ai-investment-2024-5