Stock market alert: JP Morgan predicts major decline for S&P 500

stock market alert: jp morgan predicts major decline for s&p 500

Stock market alert: JP Morgan predicts major decline for S&P 500

NEW DELHI: JP Morgan has issued a stark warning about the US stock market, predicting a significant drop in the S&P 500 by the end of the year. The bank's chief market strategist, Marko Kolanovic, projects the index to fall to 4,200, marking the lowest year-end target among major Wall Street banks. This forecast implies a more than 21% decline from current levels.

"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. This pessimistic outlook is one of the most severe on Wall Street, a Fox News report said.

Despite recent record highs, including the Dow Jones Industrial Average surpassing 40,000 for the first time and the S&P 500 reaching over 5,300, Kolanovic suggests these gains are unlikely to last. He cites several factors contributing to the bearish forecast, including sustained high interest rates, signs of persistent inflation, evidence of financial strain among lower-income consumers, and increasing geopolitical uncertainties.

Kolanovic also pointed out that the recent boost from artificial intelligence developments is unlikely to counterbalance these traditional market challenges. "We don't think that narrow themes like AI chips can compensate for all of those traditional market challenges that historically worked against the cycle," he said.

This gloomy forecast follows a volatile year for the stock market. All three major indexes experienced significant declines in mid-2023 due to fears that the Federal Reserve would raise interest rates higher than expected and maintain them at peak levels for an extended period. However, the indexes have since recovered those losses and more, with the S&P 500 up more than 29% since its low at the end of October.

Year-to-date, the S&P 500 has risen about 11.5%, the Dow Jones Industrial Average has climbed 5.5%, and the Nasdaq Composite has increased about 12%. Despite these gains, the warning from JPMorgan suggests that investors should brace for potential turbulence ahead.

For more news like this visit TOI. Get all the Latest News, City News, India News, Business News, and Sports News. For Entertainment News, TV News, and Lifestyle Tips visit Etimes

OTHER NEWS

9 hrs ago

Helping parents age gracefully: All about gapping the bridge between dependency and care giving

9 hrs ago

Deaths caused by ‘tainted liquor’ in Tamil Nadu & ‘Nijjar enigma’ — what global media reported

9 hrs ago

Gujarat floods: Heavy rainfall in Dwarka leads to water logging; IMD predicted thunderstorm

9 hrs ago

Refreshing Summer Salads and Exotic Chaat: Perfect Dishes for Every Occasion

9 hrs ago

Kohli, Rohit Out; Rinku, Ruturaj In: Complete Changes In India Squad For Zimbabwe Tour From T20 World Cup 2024

9 hrs ago

New social media platform Butterflies launched, lets AI characters interact globally with users

9 hrs ago

When Kamal Haasan Worked As A Dance Assistant To Prabhas' Uncle

10 hrs ago

Rail bridge collapses during Midwest flooding in US

10 hrs ago

Prosus writes off 9.6% stake in edtech firm Byju's

10 hrs ago

India, US explore Javelin missile co-production

10 hrs ago

Shivraj Singh Chouhan's son says ‘Delhi bowing down’, Digvijaya Singh jibes, ‘consider promoting as PM’

10 hrs ago

Paris Olympics 2024: India secure team quotas in archery; Deepika Kumari, Tarundeep Rai set for fourth Games

10 hrs ago

Delhi Airport: Fast Track Immigration system rolled out; find out who can apply

10 hrs ago

'Can't understand what's wrong': Internet in disbelief as Virat Kohli endures another failure at T20 World Cup

10 hrs ago

ET Now Leadership Dialogues: Decoding Unsecured Loans, Global Businesses & SBI's Int'l Ambition

10 hrs ago

Watch: Sonakshi Sinha And Zaheer Iqbal Pose For Group Photo With Paparazzi At Their Reception

10 hrs ago

T20 WC S/F Qualification Scenarios: Afghanistan Eyeing a Historic First Semi-final Spot; Bangladesh and Australia Still in the Race

10 hrs ago

Minnesota's Rapidan dam faces imminent failure due to flood waters

10 hrs ago

T20 WC: India avoid Head's headache to punch their ticket in final four with 24-run win over Australia

10 hrs ago

Sonakshi Sinha upcycles mother Poonam's saree, jewelry at her wedding. See pics

10 hrs ago

The timeless harmony: Yoga, meditation and ayurveda in the modern world

10 hrs ago

T20 World Cup, Kingstown, St Vincent weather update: What will happen if Afghanistan vs Bangladesh match is washed out

10 hrs ago

IND vs ENG Semifinal Guyana Weather Update: Rain Threatens WASHOUT

11 hrs ago

Yoga Day 2024: PM Modi takes selfie with participants, says 'when Yoga becomes a part of life, it benefits...'

11 hrs ago

Putin Starts Revising Russia's Nuke Doctrine; How World's Biggest Nuclear Power Can Strike Now

11 hrs ago

Centre Notifies Rules Under Anti-paper Leak Law, Mandates NRA to Prepare SOPs for Tests

11 hrs ago

Kin of Kanishka bombing victims turn away pro-Khalistan groups from prayer meet

11 hrs ago

Report: Shane McMahon might be joining the AEW

11 hrs ago

As green shift sees affordability challenges in the West, India's green discount pulling in climate investments

11 hrs ago

Snehil Dixit Mehra reveals Sanjay Leela Bhansali's prank on her: Main Heeramandi ki tawaif bante bante reh gayi

11 hrs ago

Youths keep over 20,000 litres of water for animals in Shivalik as ponds dry up

11 hrs ago

ICICI Bank launches SmartLock on iMobile Pay – Features, benefits and steps to use it

11 hrs ago

'No Religious Minority Is Safe': Pakistan Defence Minister's Admission Amid Recent Mob Lynchings

11 hrs ago

Oil rises on stronger dollar and robust fuel demand; brent crude at $85.77/bbl

11 hrs ago

Shambhavi Choudhary, one of the youngest MPs, takes oath as Member of Parliament in Lok Sabha, watch!

11 hrs ago

Kartik Aaryan on early struggle: Used to live with 12 guys in a flat

11 hrs ago

Yuvraj Singh hails Rohit Sharma for his "phenomenal" knock against Australia that came in "true hitman style"

11 hrs ago

'Defending Lt Governor?' Supreme Court raps Delhi authority over felling of trees

11 hrs ago

Rohit Sharma Creates History, Breaks Babar Azam's World Record

11 hrs ago

CBI teams rush to Gujarat, Bihar for NEET-UG leak probe