Published on 4 Jan 2024 on Motley Fool via Yahoo Finance
History Says the Nasdaq Will Surge in 2024: 2 Artificial Intelligence (AI) Growth Stocks to Buy...
The one-two punch of decades-high inflation and rapidly rising interest rates weighed on the stock market in 2022, resulting in its worst performance in over a decade -- but things are looking up. After a precipitous drop of 35% in 2022, the Nasdaq Composite has bounded forward, gaining 44% in 2023.
Students who look to the past know the market probably has further upside potential. As far back as 1972 -- the first full year of trading for the tech-centric index -- in each year after a bear market rebound, the Nasdaq has returned 19%, on average, which suggests the current rally has room to run. To be clear, there are no guarantees in investing, but the potential for the current rally to continue has history on its side.
Furthermore, there's strong evidence that the catalyst for this year's rally has been the rebirth of investor interest in artificial intelligence (AI). Let's look at two stocks well-positioned to benefit from the growing number of applications and the surge of interest in AI.