2024 Midyear Outlook

Approaching the economy’s
pivot point

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Key takeaways

Wells Fargo Investment Institute believes that gradually slowing U.S. economic growth should cool inflation enough to allow the Federal Reserve (Fed) to cut interest rates, thereby prompting gradually accelerating U.S. economic growth that leads the global economy through 2025.

The stock market rally may be challenged in the near term as uncertainties surrounding inflation and interest rates dampen investor sentiment.

We believe U.S. Large Cap Equities are best positioned to weather the shift in sentiment while an earnings recovery drives equity prices higher into 2025.

We expect the Fed to make a pivot of its own, toward lower interest rates, but officials still need more clarity from key economic indicators to gain greater confidence around disinflationary trends.

Our top five portfolio ideas

Our top five portfolio ideas

Asset class guidance

Asset class guidance

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Wondering what to expect for the remainder of 2024?
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The full 2024 Midyear Outlook from Wells Fargo Investment Institute
offers more insights and guidance for investors including:

  • Our full forecast for year-end 2024 and year-end 2025
  • Details on favored asset classes and sectors
  • Deeper dives into market sectors
  • More information to help guide your investment decisions

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