HSBC Bank predicts that the S&P 500 index will rise by 8% to 5000 points by the end of next year

According to a report by Jin10, HSBC strategist predicts that the SP 500 index will rise by 8% to 5000 points by the end of next year based on the scenario of economic soft landing and Fed rate cuts in the second half of this year. Although the SP 500 index has averaged a 22% increase in the six months from the first pause in interest rate hikes to the first rate cut by the Fed, Nicole Inui, HSBC strategist, is not very optimistic about 2024 due to factors such as US election cycle, slowing economic activity, and profit growth prospects. Since pausing interest rate hikes in July, the index has only slightly increased. Inui wrote in a statement to clients: "Entering 2024, market prospects will be more positive but not overly optimistic."