The Financial Post reports in its Thursday edition that the S&P 500 will rally to a record high next year, helped by positive sentiment and resilient valuations, according to Lori Calvasina at RBC Capital Markets, who joins a band of Wall Street strategists predicting further gains for U.S. stocks in 2024. A Bloomberg dispatch to the Post says that Goldman Sachs Group's chief U.S. equity strategist David Kostin and Societe Generale SA's head of U.S. equity strategy Manish Kabra see the index flirting with a record high next year. Morgan Stanley's chief investment officer Michael Wilson -- a staunch Wall Street bear -- has also turned more constructive. The S&P 500 has climbed 18 per cent in 2023 after tumbling last year. Optimism about artificial intelligence and hopes that the U.S. Federal Reserve would soon end its rate hiking cycle as the economy holds up have fuelled the rally. The RBC strategist said earnings will be good enough to justify another year of gains and the appeal of bonds will be blunted. She figures the U.S. presidential election will be a source of uncertainty next year, while the sluggish economy expected in 2024 through 2025 is the biggest headwind to stock market performance.
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