Stock Market Starts 2024 with Mild Downturn Amid Consolidation, Central Bank Fears, and Middle East Tensions
Despite Early Volatility, Experts Maintain Bullish Outlook for 2024
- Stock markets have started 2024 with a mild downturn, with the tech-heavy Nasdaq Composite falling more than 1.5% in the first two days of trading. This is attributed to three key reasons: a natural consolidation after big gains in 2023, fears over a 'less favorable' outlook from central banks, and disrupted shipping routes in the Red Sea sparking inflation concerns.
- Despite the downturn, experts maintain a bullish outlook for stocks, predicting that the underperformance is a 'normal' period of consolidation after last year's surge.
- Central banks, particularly the Federal Reserve, are expected to start cutting policy rates before long, despite recent hawkish rhetoric from Fed officials.
- Tensions in the Middle East, particularly the Israel-Hamas war, could have serious implications for the global economic outlook, including the potential for another energy price spike that might delay monetary policy easing.
- Despite some concerns, cyclical factors suggest that the market is positioned to hold up well in 2024, although the year is likely to be more volatile than 2023.
Investopedia 
Washington Post 
Fortune 
Forbes Forbes Investopedia 
Financial Post Financial Post Forbes Investopedia 
CNBC 
The Telegraph CNBC Washington Post 
Associated Press CNBC 
South China Morning Post 
CNA 
Benzinga CNBC CNA Washington Post Associated Press Investopedia Forbes Benzinga 
The Messenger Benzinga Investopedia Benzinga Benzinga CNBC 
The Guardian Benzinga Investopedia The Telegraph Benzinga CNBC 
WWD CNA CNBC 
One America News Network Financial Post Financial Post Washington Post Associated Press CNBC The Telegraph CNBC CNA Financial Post 
Reuters 
