The stock market is showing remarkable resilience in 2024, with inflation easing and the Federal Reserve less worried about the robust U.S. job market. This is the view of Fundstrat‘s Head of Research, Tom Lee, who accurately predicted the S&P 500’s 24% increase in 2023.
Lee emphasized the importance of the Fed’s dovish turn for stocks, downplaying the significance of the exact timing of rate cuts. He also noted that falling prices have not led to a significant rise in unemployment, a positive sign for the economy.
“The stock market should really just care that the Fed has gone from fighting inflation and almost giving the economy a heart attack to one where they try to manage the business cycle,” Lee said in an interview with CNBC on Friday. “So if they don’t feel comfortable doing this cutting in March instead of May, I don’t think it should have any effect on equities and how they do today.”
Lee also pointed out the substantial amount of cash sitting on the sidelines, which could potentially fuel further stock gains. He has predicted a new S&P 500 record in 2024, with a year-end price target of 5,200, possibly increasing to 5,500, an 11% rise from the current levels.
Read Next: Biden The Master Oil Trader Part III? President Refills Emergency Stash As Crude Price Slides
Image Via Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
