Sp 500 Likely To End This Year In Loss

last updated on

Sp 500 Likely To End This Year In Loss

S&P 500 Likely To End 2023 Near 3900

The first trading day of the week was positive for the S&P 500 as the index is finally rallying after closing two weeks in loss. In the last 2 weeks, the S&P 500 closed with a loss higher than 2%, which pushed the RSI indicator into oversold territory.

The bullish stance of the S&P 500 is driven by the earning calls from various companies. But the biggest catalyst is the FOMC meeting that's due to happen in the next few days. The markets will be looking forward to the interest rate decision with a higher chance of no rate hikes or cuts.

S&P 500 Likely To Lose Additional -5%

According to Mike Wilson (expert from Morgan Stanley), the S&P 500's bullish stance is short-lived. He added that the year 2023 end will see the S&P 500 index trading near the 3900 points. On the other hand, Morgan Stanley also holds a similar view and is urging investors to enjoy the lower share prices.

If we look back, it becomes clear that Mike Wilson was the guy who predicted the bear market of 2022. This time, he is back again with a forecast that suggests that no bullish rally will be seen by the end of this year.

If we measure the S&P 500 performance starting from July's end till today, the index has lost -9.7% of its value already. But if we also look at the forecasts made by the experts, it appears that a drop of another -5% is also on the cards.

As for the reasoning behind the bearish call, the analyst believes that business confidence is declining along with consumer confidence as well. All of these factors are not supportive of a bullish stock market as we get near to the holiday season.

According to the forecasts, the chances of a rate hike at the next Fed meeting now stand at 3%. On the contrary, those who believe that no rate hike will take place account for 97% of the votes.

Trending Stories