Tech Stocks: How to Position Yourself in the US Stock Market During 2024

The US Market Reaches New Heights Amid Volatility

In the first months of 2024, the US stock market has experienced extraordinary performance, with the NYSE and Nasdaq hitting successive all-time highs. This upward momentum, which began in November 2023, has remained steady, defying the correction expectations many analysts anticipated. The MACD indicator shows that moving averages remain closely aligned, suggesting that the bullish trend could continue over the next few quarters.

However, this boom scenario contrasts sharply with a macroeconomic context filled with uncertainties. 2024 will be loaded with political, economic, and geopolitical challenges that could reverse the current bullish sentiment dominating the US stock market. The US electoral campaign, dollar exchange rate movements, and the acceleration of artificial intelligence form a triangle of factors that will determine the trajectory of stock prices in the coming months.

Five Essential Stocks to Diversify in the US Stock Market

Nvidia (NVDA): Undisputed leader in AI semiconductors

Few companies are as well positioned as Nvidia to capitalize on the AI revolution. Its dominance in manufacturing specialized microchips makes it an essential supplier for all major tech companies powering advanced AI systems. Nvidia’s shares have experienced extraordinary growth since January 2024, repeatedly breaking their all-time highs before suffering a moderate correction in March.

Microsoft (MSFT): Dependence on OpenAI’s evolution

Microsoft’s shares benefited greatly during 2023 from its strategic alliance with OpenAI. However, OpenAI’s growing independence raises questions about the sustainability of this bullish momentum in the second half of 2024. Despite this uncertainty, Microsoft maintains a strong position thanks to its extensive corporate user base and integration of AI tools into its main products.

Alphabet (GOOG): Recovery with Gemini

Following the initial impact of the ChatGPT launch, Alphabet has accelerated the development of Gemini, its own AI model. Although Gemini is still behind ChatGPT, its potential integration into Google Search and Google Home devices opens new business opportunities. Alphabet’s shares have returned to November 2022 levels, but their growth has been more moderate than that of their tech competitors.

Amazon (AMZN): Dual strength in e-commerce and cloud services

Amazon is approaching its all-time highs in 2024, driven by the strength of its e-commerce infrastructure and its Amazon Web Services division. The company has significantly increased its investment in proprietary AI models, allowing it to stay relevant in the tech race without relying solely on third parties. Its expansion strategy in cloud services positions it as a beneficiary of both the e-commerce boom and the growing demand for computational capacity for AI.

Bank of America (BAC): Financial recovery amid rate environment

The US financial sector is poised to be a winner in 2024 thanks to expectations of economic stabilization and potential interest rate cuts. Bank of America has shown an upward trend over the past year, with particularly positive performance in the first months of 2024. Its profitability largely depends on the overall health of the US economy, making it a reliable indicator of market optimism or pessimism.

Key Dynamics That Will Define the US Stock Market in 2024

Electoral impact and political stability
The US presidential elections are an unpredictable variable that could trigger or plummet stock prices at any moment. Although the US market has shown resilience to this factor during the first months of the year, the intensity of the electoral campaign could generate unprecedented volatility in the second half of 2024.

US dollar behavior
After inflationary turbulence following the pandemic, the dollar has stabilized at levels considered balanced for importers and exporters. It is expected that the dollar will maintain a relatively flat trajectory throughout 2024, which would be a neutral and potentially favorable factor for the US stock market.

AI revolution
The acceleration in the commercialization of AI technology amplifies effects on the Nasdaq and the US stock market overall. Tech companies that manage to capture significant value from this transition—such as Nvidia, Microsoft, and Alphabet—could generate exceptional returns, while those lagging in adoption might suffer contractions.

Relative strength of the US market
Although European and Chinese markets have gained relevance, the US stock market remains a global benchmark of trust and dynamism. Its connection to Wall Street, market depth, and access to the world’s leading tech corporations continue to attract international capital flows.

Profitability Outlook: Balancing Risks and Opportunities

The US stock market in 2024 presents a landscape of all-time highs alongside latent risk factors. While inflation has been contained compared to 2023, the US electoral period introduces uncertainty regarding economic and regulatory policy decisions. Investors seeking to expose capital to the US stock market should consider a diversified strategy combining high-potential tech stocks with defensive positions in the financial sector, taking advantage of the market’s good moment while protecting against possible corrections in the second half of the year.