JPMorgan analysts are forecasting a significant decline in the S&P 500 by the end of the year reports Fox Business:
“The U.S. stock market soared to a new record high over the past week, but there may still be trouble on the horizon, according to JPMorgan analysts.
“The forecast from JPMorgan’s chief market strategist Marko Kolanovic is one of the most pessimistic on Wall Street. He and his peers see the S&P 500 ending the year at 4,200 — the lowest year-end target among major Wall Street banks. From current levels, that implies a more than 21% drop.
“‘With very high equity valuations, we do not see equities as attractive investments at the moment, and we don’t see a reason to change our stance,’ Kolanovic wrote in an analyst note this week.
“Stocks have notched record highs over the past week, with the Dow Jones Industrial Average topping 40,000 for the first time ever, while the S&P 500 climbed past 5,300. The indexes were little changed on Wednesday as investors awaited earnings from Nvidia and meeting minutes from the Federal Reserve that could shed light on the timing of interest rate cuts.
“But Kolanovic suggested the gains are unlikely to last, with interest rates likely to remain in restrictive territory for longer amid signs of stubborn inflation, evidence of weakness among lower-income consumers and growing geopolitical uncertainty.”
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