Wall Street Rethinks 2024 Outlooks After Fed-Fueled Rally

  • Pan-market surge sends traders, analysts back to drawing board
  • Investors question whether stocks, bonds can rally in tandem

The S&P 500 notched its seventh straight week of gains Friday, the longest in six years, as it flirted with a record high. 

Photographer: Michael Nagle/Bloomberg
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Wall Street investors and analysts spent months strategizing how to position for 2024. Federal Reserve Chair Jerome Powell shredded their best-laid plans in a matter of minutes this week.

Even the most ardent stock and bond bulls were caught off guard by the central bank’s decision to signal the end of its historic monetary-tightening campaign with a dovish 2024 pivot. In the aftermath, the Dow Jones Industrial Average and Nasdaq 100 surged to records, while bonds soared, credit boomed and risky assets around the world rallied.