The stock market is about to see a 10% correction, with further disinflation a ‘pipe dream’ and Fed rate cuts coming much later, Stifel says– finance.yahoo.com
The S&P 500 could be on the verge of a sharp move down, as inflation isn’t cooling much further from here, according to Stifel analysts.
In a note, the investment firm predicted the S&P 500 would fall to 4,750 in the second or third quarter of this year. That implies around a 10% decline from the benchmark index’s current levels at around 5,222 on Monday.
Inflation will likely remain stubbornly high, the strategists predicted, as the economy is coming out of what they described as a “pseudo-recession” that took place from early 2022 and lasted through the middle of 2023. That accounted for the bulk of the disinflation seen to date, and economic activity has since revved up.
“We have been wary of a broad S&P 500 correction in the middle quarters of 2024. While most strategists were expecting a recession last year or eagerly attempting to call the start of one in the next year, we have been of the view that the ~5 quarters 1Q22 to 2Q23 were a ‘pseudo-recession’ and the Fed has already harvested all the normal post-recession disinflation we would expect,” the firm wrote.
2 thoughts on “The stock market is about to see a 10% correction, with further disinflation a ‘pipe dream’ and Fed rate cuts coming much later, Stifel says– finance.yahoo.com”
2 thoughts on “The stock market is about to see a 10% correction, with further disinflation a ‘pipe dream’ and Fed rate cuts coming much later, Stifel says– finance.yahoo.com”