The S&P 500 has been rising for the last couple of days in hopes of a slowdown in U.S. interest rates.
However, the overall downward trend of the index remains and gets quite prominent due to concerns about a recession.
Thus, Citigroup analysts have lowered the forecast for the S&P 500 at the end of this year from 4,200 to 4,000 and at the end of 2023 the forecast is 3,900. They expect a "gradual shift" in the Fed's interest rate policy in 2023, which, in their opinion, must provide some support to US stocks.
Despite cautious optimism, bank strategists also highlighted risks to the U.S. stock market, such as:
* Unforeseen consequences of the current rapid rate growth of the Fed;
* Deterioration of economic indicators at a faster rate than predicted.
So, most likely, the index will go up to 3800, 3900, but then it will continue going down towards 3500.
This content is for informational purposes only and is not intended to be investing advice.
