Bofa Securities Slashes S&P 500 Target, sees only one-third of market bottom signs triggered

As the economy braces for slower growth and the threat of a possible recession, Bank of America is changing its view of the S&P 500. The S&P 500 will fall 11% by the end of 2022 when an inflationary shock triggers a recession, Bank of America researchers say.

Credit Suisse’s Wall Street said a recession is “highly likely” as the S&P 500 falls about 18% to 3,200. Since the beginning of the year, the S&P 500 index has fallen by 10%, which means a one-third chance that a recession in the market will be a foregone conclusion, Subramanian writes. Bank of America also calculated that so far, the stock market has priced one-third of the chance of a recession. Meanwhile, according to a note published on Friday, a third of the chances of a recession were estimated by the stock market.

The probability of a recession in the US next year could reach 35%, according to economists at Goldman Sachs Group Inc., who lowered the Fed’s growth forecast due to a sharp increase in oil prices and the consequences of the war in Ukraine. Goldman Sachs this week downgraded Goldman Sachs’ forecasts for full-year US economic growth, citing “higher oil prices” and saying there is a risk of a US recession next year.

According to BofA Securities, a moderate recession in the second half of this year will put pressure on the market as a whole. Equity and quantitative strategist Savita Subramanian cut Bank of America’s price target on the S&P 500 from 4,600 to 4,500 on Friday, saying in a note to clients that Bank of America has been betting on core products since a recession becomes possible.

Bank of America strategist Savita Subramanian cut the price of the S&P 500 to a record low of 3,600 from 4,500 previously. In the last month alone, their price targets accounted for nearly 80% of S&P 500 stocks. In just one month, Wall Street analysts have cut their 12-month price targets on some Carnival (CCL) Micron Technology (MU) Nike (NKE) NKE products, according to an analysis of S&P Global Markets’ Investor’s Business Daily data. more than 10%. Intelligence and Market Smith.

S&P 500 stock price targets are falling rapidly over the next 12 months. Bank of America Global Research cut its price target for Nordstrom Nordstrom from $21 to $15, in line with analysts’ opinion of a peer group of department stores.

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