The S&P 500 recently reached a new all-time high, followed by an unprecedented monthly closure in February. Further, the leading stock index reached higher levels for a record weekly closure at 5,137 on March 1.
Notably, this impressive performance forced expert analysts from financial giants to review their S&P 500 forecasts for 2024. Previously, the expected average was 4,861, with maximum and minimum forecasts of 5,400 and 4,200, respectively.
For example, Barclays adjusted their prediction from 4,800 to 5,300, a remarkable 10% increase.
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Interestingly, Finbold asked ChatGPT-4 to predict the S&P 500 price for the end of 2024. The OpenAI’s artificial intelligence (AI) model also showed a strong bullish bias for the stock market this year.
ChatGPT-4 predicts S&P 500 to trade between 5,200 and 5,500
In particular, ChatGPT-4 Turbo output sets the most likely range of 5,200 and 5,500. The AI explained that 2024 will likely be a volatile year “due to uncertainties and adjustments following the Federal Reserve’s decision to lower interest rates.”
Historically, lower interest rates can be positive for the stock market, according to ChatGPT. Because it reduces the cost of borrowing, potentially stimulating investment and spending.
ChatGPT-4 maximum and minimum forecasts for the S&P 500 in 2024
However, the artificial intelligence model explains that specific scenarios may favor better or worse performances moving forward. In a more optimistic economic landscape, the S&P 500 could reach higher grounds at 5,700 in 2024.
On the other hand, economic downturns, geopolitical escalations, or other factors could bring losses from current levels. ChatGPT-4 also mentions that the market should expect corrections considering the recent rally. In this context, the S&P 500 could drop to a range as low as 4,800-5,000.
In conclusion, traders should expect an increase between 1.2% and 7.0% in the most likely forecast by ChatGPT-4. Moreover, the S&P 500 could grow nearly 11% in the best-case scenario while dropping 6.5% with the worst prediction.
Investors must follow macroeconomics and corporate earnings in 2024 for better insights into the S&P 500 performance.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
