Societe Generale SA predicts that investors will continue to invest in U.S. stocks, taking advantage of market dips ahead of potential Federal Reserve interest rate cuts anticipated to begin in early 2025. Despite a 15% surge in the S&P 500 Index this year, the firm expects the “buy-the-dip” strategy to persist, with further growth anticipated as the Fed’s rate-cutting cycle approaches.
The firm acknowledges a slight downside risk to the S&P 500 in Q3, potentially influenced by election volatility. However, it does not foresee a bear market or stock-market bubble. Societe Generale also suggests that the current AI boom could drive the S&P 500 as high as 6,666, while warning of a downside risk if U.S. weekly jobless claims exceed 300,000. Additionally, the firm highlights cyclical opportunities in sectors such as industrials and financials.
