Citi strategists upbeat on US stocks in 2024, fueled by earnings

The S&P 500 is poised for solid gains next year on strong earnings growth and a broadening of the stock market's rally, strategists at Citigroup said on Friday. The index has gained nearly 20% in 2023, led by megacap tech and growth stocks, but "a broadening beyond 2023’s Growth leadership is necessary for further S&P 500 gains," the strategists said. "All told, we are positive on U.S. equities premised on improving earnings growth, even as recession risk lingers," the Citi strategists said in their report, projecting S&P 500 earnings per share to rise 10.4% in 2024.