State Street outlined three reasons why markets may continue to trend higher

Traders and investors are becoming increasingly anxious as the stock market continues to climb in 2024 as the S&P 500 (SP500) has set a new all-time high on over 30 occasions this year alone, but Michael Arone, Chief Investment Strategist at State Street Global Advisors outlined three reasons on why the market may continue moving higher.

According to Arone, the risks are increasing that the persistent actions of the Fed could push the economy into a recession. However, Arone added that the economy might just be able to avoid this feared outcome for three specific reasons. They are as follows:

While risks still remain in the market, State Street Global Advisors noted that the Federal Reserve won’t stop the uptrend that’s taking place across the marketplace.

“AI and its use cases are ushering in a prolonged and unprecedented productivity miracle. The surge in immigration over the past couple of years has helped normalize the labor market without increasing inflationary pressures — and those benefits will likely continue. And the top 20% of income earners could boost discretionary spending by 8% or more this year.”