For investors cheering stocks’ strong rally into the year end, Barclays warned that it could be eating into 2024’s return. A number of macro news events sparked a relief rally in equities as 2023 begins to wrap up, with the S & P 500 registering four straight weeks of gains and climbing 8.5% in November. The sudden leg up has left Barclay’s head of U.S. equity strategy Venu Krishna wary of market performance next year. “Positioning leaves room for further upside, but be wary of stocks moving too far, too fast,” Krishna said in a note to clients. “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 firm expects only single-digit returns next year as modest economic deceleration offsets the benefit of easing inflation. Barclays raised its 2024 S & P 500 price target to 4,800, from 4,500 previously. “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 said. Among sectors, Barclays is bullish on Big Tech as well as consumer discretionary stocks into 2024. The firm said major technology stocks are expected to be the primary drivers of S & P 500’s earnings growth next year, powered by a stronger spending environment and increased AI adoption. Meanwhile, Barclays said the consumer enters 2024 with strong household balance sheets that should support discretionary spending. The sector also remains under-invested, the strategist added. Krishna has one of the more bearish targets among Wall Street peers in 2023, predicting the broad market index would end the year at 4,150, compared with a median target of 4,450, according to CNBC Pro’s Market Strategist Survey , which rounds up forecasts from 15 top Wall Street strategists. — CNBC’s Michael Bloom contributed reporting.