For traders cheering shares’ sturdy rally into the 12 months finish, Barclays warned that it could possibly be consuming into 2024’s return. Various macro information occasions sparked a aid rally in equities as 2023 begins to wrap up, with the S & P 500 registering 4 straight weeks of features and climbing 8.5% in November. The sudden leg up has left Barclay’s head of U.S. fairness technique Venu Krishna cautious of market efficiency subsequent 12 months. “Positioning leaves room for further upside, but be wary of stocks moving too far, too fast,” Krishna mentioned in a observe to shoppers. “The trifecta of a weak October jobs report , dovish FOMC surprise, and Treasury QRA triggered a strong technical bid for stocks.” “Combined with year-end seasonality, the surge in institutional flows could push equities over their skis, essentially ‘borrowing’ 2024 returns and leaving less room for upside next year,” he added. .SPX YTD mountain S & P 500 The agency expects solely single-digit returns subsequent 12 months as modest financial deceleration offsets the advantage of easing inflation. Barclays raised its 2024 S & P 500 value goal to 4,800, from 4,500 beforehand. “We see modest downside to consensus EPS and price targets as global economic activity begins decelerating into next year, though with more room for active management to deliver returns,” the strategist mentioned. Amongst sectors, Barclays is bullish on Large Tech in addition to shopper discretionary shares into 2024. The agency mentioned main know-how shares are anticipated to be the first drivers of S & P 500’s earnings development subsequent 12 months, powered by a stronger spending atmosphere and elevated AI adoption. In the meantime, Barclays mentioned the buyer enters 2024 with sturdy family stability sheets that ought to help discretionary spending. The sector additionally stays under-invested, the strategist added. Krishna has one of many extra bearish targets amongst Wall Road friends in 2023, predicting the broad market index would finish the 12 months at 4,150, in contrast with a median goal of 4,450, based on CNBC Professional’s Market Strategist Survey , which rounds up forecasts from 15 high Wall Road strategists. — CNBC’s Michael Bloom contributed reporting.