There may be trouble looming on the horizon for the U.S. stock market, according to BCA Research. In a note to clients last week, BCA Research chief global strategist Peter Berezin warned that, contrary to popular belief, the economy will fall into a recession either this year or in early 2025. Should that happen, the S&P 500 could tumble to 3,750, which marks a 30% drop from current levels.
Stocks notched a new record in mid-May, with the Dow Jones Industrial Average topping 40,000 for the first time ever, but they have since fallen from those highs. The indexes opened slipped Monday morning as investors await key jobs data from the Labor Department. The S&P benchmark was down about 12 points as of mid-morning. The forecast from BCA Research – one of the gloomiest on Wall Street – comes after a volatile year for the market.
All three indexes tumbled in mid-2023 amid fears the Federal Reserve would raise interest rates higher than previously expected – and hold them at peak levels for longer. However, they have recouped those losses and more, with the S&P 500 up more than 29% since it hit bottom at the end of October. Since the start of the year, the benchmark index is up about 15%, while the Dow Jones Industrial Average has climbed 3.7%.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »
Source: CNBC - 🏆 12. / 72 Read more »