Fed decision today: S&P 500 seen hitting 5,700 level

S&P 500 is keeping roughly flat at writing after the U.S. Federal Reserve left its benchmark overnight borrowing rate unchanged at 5.25% to 5.5%.

S&P 500 outlook after the Fed decision today

Members of the Federal Open Market Committee did, however, signal three rate cuts by the end of 2024 on Wednesday.

Fed decision arrives shortly after Lucy Baldwin – research and equity advisory global head at Citigroup said the benchmark index could hit 5,700 level over the next twelve months.

Note that S&P 500 is already up more than 10% versus the start of this year at writing.

Dot plot indicated three more rates cuts in 2026

The dot plot also indicated another three rate cuts in 2026 and two more after that. Job gains have "remained strong" as per the FOMC statement on Wednesday.

According to the Citi expert, her bottom-up valuation suggests the benchmark index, while not cheap, is not too expensive either.

She’s bullish on S&P 500 as “there’s this broadening-out thesis that needs to come through” and recommends financial technology and the AI stocks in particular for 2024.

The news arrives only days after the Bureau of Labour Statistics reported inflation at 3.2% versus the Dow Jones estimate of 3.1% as Invezz reported here.