U.S. stocks are about to enter the most turbulent period in the 2024 election year

The U.S. stock market could be in for a period of downturn and volatility between now and November 5. After a recession scare earlier this month, U.S. financial markets appear to be signaling the all-clear, with economic data appearing to pave the way for the Federal Reserve to initiate rate cuts. But market analysts warn that the outlook for stocks remains bleak as the 2024 presidential election season gets underway. Based on historical performance, a full-year gain of more than 8% often heralds an impressive bull run the following year. With the election and rate cuts, U.S. stocks are likely to rise in 2024, but the volatility throughout the year will also be more tortuous than before. In addition to the uncertainty of the election itself, this year’s U.S. stock market will also face the shock of the Federal Reserve’s rate cuts. Generally speaking, rate cuts are absolutely good for the stock market, but the unclear path of rate cuts brings unpredictable volatility. From the beginning of the campaign to the end of the election, any monetary and financial policy may bring severe turbulence to the market, and then change or become a new investment indicator of the market. In the foreseeable more abundant financial environment and a more torn and divided global capital market, no matter how the U.S. stock market performs in 2024, it will surely be a wonderful annual drama.