JPMorgan Chase chief global market strategist and co-head of global research, Marko Kolanovic, reportedly said last week in a mid-year outlook that the S&P 500 will drop almost 23% from 5,483 on June 27 to 4,200 by the end of 2024 amid an economic slump and headwinds like downward earnings revisions.
US real gross domestic product increased at an annual rate of 1.4% in Q1 2024, a marked decline from 3.4% growth in Q4 2023. Kolanovic and his team’s gloomy economic outlook comes as the S&P 500 looks on track to reach record highs. It surpassed the 5,500 mark in early trading on June 28, as cooling US inflation continues to drive bets on US Federal Reserve rate cuts later this year. The market rally on excitement around AI has translated to massive gains for tech investors.
Kolanovic is one of the few strategists who have retained their bearish outlooks all year despite peers at Goldman Sachs, Citigroup, and Bank of America upgrading their 2024 S&P 500 targets to keep up with the year-long market rally. The average 2024-end projection for the index stood at 5,317, implying a 3% fall.
The Summer of Meltdown:t.co/0MjDrrzIYf
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