Wall Street’s path during the remainder of 2024 will not be as smooth as the first quarter, analysts warn. Stocks surged in the first three months of the year, with the S&P 500 index recording its best first-quarter return in five years. However, since the beginning of April, the market has taken a different turn.
The S&P 500 has dropped nearly 4% this month as investor hopes for Federal Reserve rate cuts continue to diminish. Fed Chair Jerome Powell’s recent comments highlighted the need for greater confidence in inflation moving towards 2% before considering policy easing, further dampening market sentiment.
The 2-year Treasury yield surged above 5% for the first time since November following Powell’s remarks, leading stocks to hit session lows. Analysts anticipate a bumpier ride ahead compared to the smooth sailing of the first quarter.
While the S&P 500’s 4% decline in April is milder compared to historical averages, concerns around inflation and economic growth are on the rise. Bond yields have climbed, signaling changing market expectations for US rate cuts.
Some Wall Street experts view market dips as opportunities rather than red flags, emphasizing a bullish outlook in the long term. Strategies like dollar-cost averaging are suggested for investors looking to enter the market amidst current volatility.
Overall, uncertainty looms over the remainder of 2024 for the New York Stock Exchange as investors navigate shifting expectations and economic indicators. Stay tuned for more updates on market trends and developments.