2024 Market Watch: Shifts, Surprises & Signals

Financial markets are in a time of adjustment, driven by expectations of a possible Donald Trump victory and a “Republican sweep” in Congress for the 2024 elections. This political backdrop suggests a possible shift in economic policies toward tax cuts and deregulation, which appeals to some investors, although concerns persist on issues such as international trade.

The long-term outlook for the S&P 500 is moderate; Goldman Sachs projects a nominal return of 3% per year for the next decade, which could cause Treasuries to outperform the equity market in terms of attractiveness.

Next week will be key, as earnings reports from major tech companies (with 5 of the 7 majors), along with new inflation and employment data, could influence expectations about the direction of the economy and future Fed interest rate decisions.