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SPOTLIGHT
2024 equity sector performance outlook
As part of Fidelity's market outlook for financial advisors, find out where our sector managers have found the most compelling potential opportunities for 2024 and beyond.
The resurgence of U.S. equity leadership
The biggest story for the financial markets in 2023 was the resurgence of U.S. equity leadership, especially U.S. large cap stocks. A slowing in the pace of inflation, easing monetary policy from the U.S. Federal Reserve, and a resilient U.S. economy provided a favorable backdrop for equities for much of 2023. From a sector performance perspective, information technology and communication services led the way with a huge reversal from the year before as investors and advisors became more comfortable investing in growth-oriented stocks.
Looking ahead to 2024, Fidelity's sector portfolio managers have strong conviction in several investment themes and trends they believe are likely to transcend any short-term macroeconomic dynamics influencing the broader market. These include possible beneficiaries of artificial intelligence (AI) adoption in the information technology and communication services sectors, makers of novel weight-loss drugs in health care, and potential plays on the U.S. and global shift toward decarbonization in the utilities sector.
Read on to learn more about Fidelity sector managers' highest-conviction ideas across the 11 equity sectors as part of Fidelity's market outlook for advisors in 2024 and beyond.
Explore the 11 equity sector outlooks
COMMENTARY
Communication services sector
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Consumer discretionary sector
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Consumer staples sector
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Energy sector
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Financials sector
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Health care sector
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Industrials sector
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Information technology sector
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Materials sector
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Real estate sector
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Utilities sector
Investment research update
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Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
References to specific investment themes are for illustrative purposes only and should not be construed as recommendations or investment advice. Investment decisions should be based on an individual's own goals, time horizon, and tolerance for risk. This piece may contain assumptions that are "forward-looking statements," which are based on certain assumptions of future events. Actual events are difficult to predict and may differ from those assumed. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described here.
Past performance is no guarantee of future results.
Investing involves risk, including risk of loss.
Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Because of its narrow focus, sector investing tends to be more volatile than investments that diversify across many sectors and companies. Sector investing is also subject to the additional risks associated with its particular industry.
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