The new year will be a tough one for U.S. stocks, according to JPMorgan. The bank expects the S&P 500 index to end 2024 at 4,200. This is 7.8% below the index’s Tuesday closing price. Dubravko Lakos Bujas, the bank’s chief global equity strategist, said: “We expect a more difficult macro environment for stocks next year, including softening consumer trends, with investor positions and sentiments almost reversing. ” “Equities are currently valued at high levels and volatility is near historic lows, but geopolitical and political risks remain elevated.” 2023 will be a banner year for the stock market, with the S&P 500 index He rose more than 18%. These gains were primarily driven by the meteoric rise of companies related to artificial intelligence, such as Nvidia and Meta Platforms. This strong performance came despite a series of rate hikes by the Federal Reserve aimed at curbing U.S. inflation in 2023. Specifically, he expects S&P 500 earnings to increase 2% to 3% next year. The strategist recommends investors maintain an overweight in bond proxies and buy blue-chip stocks “at affordable prices in the utilities sector, which is in the sweet spot of this mix.” —CNBC’s Michael Bloom contributed reporting.