U.S. Markets closed

What to Expect from the Stock Market in 2020?

Benjamin Rains

The Dow, S&P 500, and Nasdaq all hit new highs Monday on the back of the phase one U.S.-China trade deal. The agreement represents a de-escalation in the trade fight between the world’s two largest economies and could help the market continue its impressive run to close out 2019.

The S&P 500 has climbed over 27% this year, driven by giants such as Apple AAPL, Microsoft MSFT, and Facebook FB. On top of that, U.S. unemployment currently rests at 50-year lows and IHS Markit expects the U.S. economy to expand 2.2% in 2020, above the Fed’s 2% growth projection. “The welcome signs of improvement help to ward off recession risks,” IHS Markit’s chief business economist Chris Williamson told the Wall Street Journal.

Meanwhile, the semiconductor industry is projected to bounce back in 2020, as part of a larger comeback. Looking ahead, S&P 500 earnings are projected to surge by 8.1% on 4.2% higher revenue next year, based on our Zacks estimates.

Clearly, uncertainty remains and Wall Street and investors hope that the U.S. and China will continue to make more progress on the trade front. But the phase one deal, along with House Democrat support for the new United States, Mexico, Canada Agreement to replace NAFTA, seems to be more than enough for now.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Facebook, Inc. (FB) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research