Stock Market Declines on the First Trading Day of 2024, Analysts Predict Trends in Stock and Cryptocurrency Prices

According to reports, the stock market declined on the first trading day of 2024, leading analysts to speculate on this month's trends in both the stock market and cryptocurrency prices. On Tuesday, the SP 500 index and the Nasdaq Composite index fell by 0.7% and 1.9%, respectively. While the Dow Jones Industrial Average remained relatively stable, the Russell 2000 index dropped by 0.7%. This decline is not favorable for the high expectations analysts had. Last month, Goldman Sachs raised its year-end target for the SP 500 index by 8% to 5100 points, citing interest rate cuts and declining inflation. The median expectation from a Bloomberg survey of strategists' reports is slightly lower, at 4850 points, which would still represent an approximately 2% increase compared to 2023. Experts believe that if everything goes as planned—rate hikes, a soft landing, profit growth, and inflation control—the stock market may maintain its upward momentum. However, whether these specific conditions can be achieved and sustained remains another question. Tom Essaye, the founder of Sevens Report Research, stated, "The SP 500 index is valued at a high multiple of 19.5 times as trading begins in 2024. While I wouldn't say this valuation is unreasonable, I would say that this valuation makes several critical positive assumptions about key market-influencing factors next year. The extent to which reality matches these assumptions will determine whether the stock market continues its upward trend (with the SP 500 index reaching new highs and hitting 5000 points) or retraces much of the Santa Claus rally in the fourth quarter." Despite Bitcoin and Ethereum showing some gains at the beginning of 2024, cryptocurrency analysts suggest that the optimism in exchange-traded funds (a major driver of Bitcoin hitting $46,000 this week) will not be the sole factor influencing prices.