Wall Street Predicts ‘US Stock Bull Market This Year’: No Longer Limited to Tech Stocks, Will ‘Bloom Across Multiple Sectors’!

①Investor enthusiasm for the prospects of artificial intelligence (AI) is expected to drive the rise of large technology stocks, while Wall Street anticipates that the U.S. stock bull market will flourish across multiple sectors; ②The industrial, materials, energy, and consumer staples sectors have outperformed the broader market, with the small-cap Russell 2000 index rising 8% since the beginning of the year.

Cailian Press, January 19 (Editor Huang Junzhi) Investor enthusiasm for the prospects of artificial intelligence (AI) is expected to continue driving the rise of large technology stocks this year. However, at the same time, Wall Street also anticipates that the U.S. stock bull market will flourish across multiple sectors in 2024.

Over the past two weeks, the industrial, materials, energy, and consumer staples sectors have all outperformed the broader market, with gains reaching 5.5% or more. Even the small-cap Russell 2000 index has risen 8% since the beginning of the year, surpassing the S&P 500 index, which has increased by more than 1% during the same period.

John Stoltzfus, Chief Investment Strategist at Oppenheimer, stated in an interview: ‘This is a bull market that is constantly expanding.’

It is reported that Stoltzfus has set a target price of 8,100 points for the S&P 500 index this year, implying an increase of approximately 17% from current levels, making it the most optimistic forecast on Wall Street. In contrast, most other analysts predict a double-digit percentage gain for the benchmark index, with target prices of 7,500 or 7,600 points.

He added: ‘What we are witnessing is a rotation, and it does not necessarily involve selling off technology stocks as we might have imagined. It is profit-taking aimed at broadening investment scope and achieving diversification.’

Keith Lerner, Co-Chief Investment Officer at Truist Advisory Services, also agreed with this view. His company’s strategy involves overweighting industrial stocks while upgrading ratings for healthcare and energy stocks.

‘I would not give up on technology at this point. I believe there are more opportunities beyond just technology,’ he added.

Moreover, given the momentum demonstrated at the start of the earnings season last week, strategists remain optimistic. The investment banking businesses of Goldman Sachs and Morgan Stanley performed among their strongest in years since the pandemic began, driving up the share prices of both companies.

Taiwan Semiconductor’s robust performance also boosted semiconductor stocks and reinforced optimism about the accelerating development of the AI cycle. Shares of memory chip maker Micron Technology, equipment manufacturer ASML Holding, and Applied Materials have each risen by at least 25% so far this year.

The performance in the artificial intelligence chip sector so far indicates that AI and technology are expected to lead the market again this year as companies adopt AI and related technologies more broadly.

Venu Krishna, Head of U.S. Equity Strategy at Barclays, stated: “As we await developments, I believe technology, particularly large tech companies and artificial intelligence, remains at the core of this market. We are confident that AI will maintain strong momentum this year despite increased scrutiny.”

The test will be whether software stocks facing AI disruption can hold their ground. Since the beginning of the year, shares of companies such as Microsoft, Salesforce, and ServiceNow have declined as investors weigh the impact of AI. Meanwhile, the market is also watching whether large tech firms will continue to invest in AI and whether these investments will yield significant returns.

Among the ‘Mag 7’, Alphabet rose 6%, Amazon gained 3%, while Apple, Microsoft, Meta, and Tesla have all declined since the start of 2026. NVIDIA, the “AI darling,” saw its share price increase by nearly 1%.