Markets roared in Q2, driven by AI optimism and hopes of future interest rate cuts.¹

Can stocks continue to rise in the second half of 2024?

Let's take a look at what happened in Q2 and what could be coming.

 

 

Key Takeaways for Savvy Investors

Markets turned in a blockbuster performance in the first half of 2024.

Do the bulls still have room to run?

Or will interest rates, the election, and recession risks cause markets to stumble?

So far, it doesn’t look like market trends are slowing down.

Tech optimism continues to rule, and strategists are still pricing in lower interest rates.⁵

However, we can expect volatility and some corrections ahead as traders sell and take profits.

If it looks like the Federal Reserve will keep rates high for longer, we might see a bigger pullback.

Recession risks are still above historical averages,⁴ so there's still a chance we'll see an economic slump.

We’re watching data and trends closely.

Bottom line: We’re cautiously optimistic (but still watchful) about where markets could go in the second half of 2024.

If you have any questions or concerns about markets, the economy, or your portfolio, please give us a call at (508) 790-7039.

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Sources:

1. https://www.cnbc.com/2024/06/27/stock-market-today-live-updates.html

2. https://www.cnbc.com/2024/06/12/fed-meeting-today-on-interest-rate.html

3. https://www.cbsnews.com/news/gdp-us-economy/
4. https://www.spglobal.com/ratings/en/research/articles/240618-u-s-business-cycle-barometer-recession-risk-remains-above-historical-norm-13151066

5. https://www.conference-board.org/brief/global-economy/fomc-analysis-june-2024

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