The Nasdaq-100 Technology Sector index may not have gotten off to a great start in 2024 following last year's impressive gains, slipping nearly 5% in the first week of the new year, but investors would do well to take a look at the bigger picture as there are indications that it could gain momentum as the year progresses.

A closer look at historical trends tells us that the Nasdaq-100 has endured only seven down years since it was introduced in 1985. What's more, the index tends to bounce back strongly in the two years following a down year. Also, historically, the year in which the Nasdaq-100 has jumped more than 40% is followed by another year of strong growth that averages 24%.

That's why investors shouldn't get discouraged by the Nasdaq's shaky start to the year, especially considering that the index could gain from additional tailwinds in 2024. From a recovery in the smartphone and personal computer (PC) markets to the hot market for artificial intelligence (AI) chips to a further cooldown in inflation to potential interest rate cuts by the Federal Reserve, there are several reasons to be bullish about the Nasdaq's prospects in 2024.

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Source Fool.com