The S&P 500 recently hit new highs, posting an unprecedented monthly closing price in February. Additionally, the major stock index reached a record weekly closing price of 5,137 on March 1st.
Notably, this impressive performance has forced the financial giant’s professional analysts to revise their forecasts for the S&P 500 index in 2024. Previously, the average prediction was 4,861, the highest prediction was 5,400, and the lowest prediction was 4,200.
For example, Barclays adjusted its forecast from 4,800 to 5,300, which is a significant 10% increase.
Interestingly, Finbold asked ChatGPT-4 to predict the S&P 500 price at the end of 2024. 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 most likely sets the range between 5,200 and 5,500. AI explained that 2024 is likely to be a volatile year “due to uncertainty and adjustment following the Federal Reserve’s decision to lower interest rates.”
Historically, lower interest rates can be positive for the stock market, according to ChatGPT. This is because it reduces borrowing costs and could stimulate investment and spending.
ChatGPT-4 S&P 500 maximum and minimum forecast for 2024
However, the artificial intelligence model explains that future performance may be better or worse in certain scenarios. In a more optimistic economic situation, the S&P 500 index could reach a high level of 5,700 in 2024.
On the other hand, economic downturns, geopolitical escalation, or other factors could result in losses from current levels. ChatGPT-4 also says that the market should expect a correction given the recent rally. In this context, the S&P 500 index could fall to his 4,800-5,000 range.
In conclusion, traders should expect an increase of 1.2% to 7.0% with the most likely prediction by ChatGPT-4. Additionally, the S&P 500 index could grow nearly 11% in the best-case scenario, but could decline 6.5% in the worst-case forecast.
Investors should keep an eye on macroeconomic and corporate earnings in 2024 for deeper insight into the S&P 500’s performance.
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