Bearish Outlook: S&P 500 Threatened by 2024 Recession Signals
At present, the S&P 500 index rests at 4,567, marking a December downturn. This decline aligns with the Federal Reserve's move to ease interest rates, causing a dip in the U.S. dollar.
Notably, the Nasdaq, Dow Jones, and S&P 500 indices seem stable at their current support levels. Projections from JP Morgan’s top analyst hint at a potential 23% to 25% plunge for the S&P 500 in the short term.
Wall Street is witnessing a shift from bullish to bearish sentiments, signaling a global market sway towards pessimism. Various economic indicators now suggest an impending recession expected to hit the markets around 2024.
JP Morgan’s technical strategy head, Jason Hunter, points out a significant turn in the S&P 500’s trajectory. He warns of indications pointing to a forthcoming low in 2024, possibly dragging it down to 3,500—a sharp fall of about 25% from its current value at 4,567.
“Anticipate a market correction. Based on technical analysis, we might see the S&P 500 drop to 3,500,” Hunter mentioned in an interview on CNBC’s Squawk Box.
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Hunter attributes this bearish trend to the looming recession, highlighting risks even in the event of a “soft landing” for the U.S. economy. Consequently, stock values might undergo immense pressure, potentially leading the S&P 500 to record lows in the coming years.
“Analyzing historical patterns since yield curve inversions dating back to the 1960s, there’s a strong tendency toward entering a bear market associated with a recession. As we move into the upcoming year, this trend could persist,” he summarized.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
