Bank of America analysts warned of the onset of a historically worst season for the US stock market. writes CNBC. The last ten days of September are the most difficult ten-day period of the year for the S&P 500 index, said Bank of America technical analyst Stephen Suttmyer. According to his calculations, during this period the index fell 60% of the time with an average return of -1.11%.
According to a Bank of America expert, the US stock market entered its historically worst seasonal period of the year on Monday, September 18. The S&P 500 Index (SPX) is down about 0.6% since the beginning of the week. Even though there may be a decline at the end of the month, the Bank of America technical analyst remains optimistic about future performance. According to him, the stock market is still well above the key support level and remains within the bullish trend.
Goldman Sachs warned that a difficult period for the stock market could be observed in October. Typically, this month sees high volatility in the market as companies release full year updates and as the third quarter comes to an end and quarterly reports are released. This data can often have a negative impact on the market. “We expect volatility to increase over the next few weeks,” reported Goldman Sachs expert John Marshall.
According to the average forecast of 41 strategists, interviewed Reuters The benchmark S&P 500 index will end the year at 4,496, up about 1% from Monday’s close of 4,453.53. In just one year, according to experts, the index will increase by approximately 17% compared to the end of 2022.
Eight of 13 strategists who responded to a follow-up question from Reuters about the timing of a U.S. stock market correction said a correction is likely by the end of this year, and two said they rate that scenario as highly likely. In its base case scenario, Bank of America expects the S&P 500 to end the year at 4,300, down about 3% from current levels. Goldman Sachs believes that the index will rise to 4,500 points, that is, by about 1.5%.
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