Stocks slide after Fed pauses, hints at higher interest rates for longer: Stock market news today

Financial institution of America boosts S&P 500 year-end goal

With fears of one other Fed fee curiosity hike and a shopper slowdown looming, there’s loads for inventory market bears to level too when making the case for shares to say no as 2023 involves a detailed.

However Financial institution of America’s head of US fairness & quantitative technique Savita Subramanian has a easy message for buyers courtesy of a reggae music legend: “Don’t fret, be joyful,” Subramanian wrote in a brand new notice to purchasers on Wednesday.

Financial institution of America boosted its year-end goal for the S&P 500 to 4,600 from 4,300 within the notice. That will replicate about 3% upside from the S&P 500’s present ranges.

‘“Recession averted” says the consensus economist, however a contemporary wave of bear narratives round equities have emerged,” Subramanian wrote. “The web message of our 5 goal indicators is bullish, yielding a brand new 2023 year-end goal of 4600, up from 4300.”

Financial institution of America’s year-end 4600 name for the S&P 500 is without doubt one of the highest amongst Wall Road strategists tracked by Yahoo Finance. That is a great signal, based on BofA’s analysis.

“Shares low cost anticipated development however react to surprises,” Subramanian.

Primarily based on knowledge since 1999, BofA discovered the common S&P 500 year-end goal on the finish of August usually tasks 5% features via the tip of the yr. Within the uncommon years when strategists see the benchmark index declining from it is August shut, the S&P 500 has risen each time and boasts higher common returns than when strategists had predicted features for the S&P 500.

On the finish of August this yr, strategists S&P 500 targets prompt 2% draw back. So even because the macro headwinds mount, possibly there nonetheless might be room for an additional shock to the upside.

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