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Message: [QUOTE="Vlad RF, post: 227028, member: 61796"] [B][SIZE=5]S&P 500 Forecast for 2024: Can the Index Hit 5,000?[/SIZE][/B] [CENTER][img]https://blog.roboforex.com/wp-content/uploads/2023/11/30.11.2023.jpg[/img] [B]Dear Clients and Partners,[/B][/CENTER] On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024. [SIZE=5]Overview of the S&P 500[/SIZE] The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc. Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market. [SIZE=5]The S&P 500 eligibility criteria[/SIZE] [LIST] [*]Market capitalisation is greater than or equal to 14.5 billion USD [*]At least 50% of shares should be available for public trading [*]Stocks should be traded on the NYSE or NASDAQ [*]The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US [*]Operations for the last four quarters should be profitable [/LIST] The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company. [SIZE=5]Looking back: the S&P 500 performance in recent years[/SIZE] According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%. The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022. [IMG]https://blog.roboforex.com/wp-content/uploads/2023/11/sp-1.png[/IMG] [SIZE=5]Global economic factors influencing the S&P 500[/SIZE] [LIST] [*]The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions [*]Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth [*]Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations [*]Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth [*]Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index [*]Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes [/LIST] [URL="https://blog.roboforex.com/blog/2023/11/30/sp-500-forecast-for-2024-can-the-index-hit-5000/?utm_source=earnforex.com&utm_medium=cpc&utm_campaign=rf_en_external_forums_blog&utm_content=text&a=ohrb"]Read more at R Blog - RoboForex[/URL] [B]Sincerely, The RoboForex Team[/B] [/QUOTE]

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