After a stellar 2023, the stock market has continued to brush off the impact of stubborn inflation and higher interest rates this year. The S&P 500 is up more than 12% year to date to a record high, topping the roughly 10% average annual rise in the blue-chip index since 1957 in under six months. A strong first-quarter earnings season and a resilient economy have underpinned stocks’ success, but some of Wall Street’s top strategists still fear a downturn is on the way.
In a Tuesday note, Stifel’s chief equity strategist Barry Bannister said he expects the S&P 500 to sink roughly 10% to 4,750 by the end of the summer. The Wall Street veteran—who argued in 2023 that the stock market returns could be flat for a decade, when adjusted for inflation—cited three main reasons for his bearish outlook.
