Global trade conflicts, inflation concerns and weaker labor market data are currently burdening the mood on the stock markets. According to an analysis company, the current market correction should initially last.
• Analyst warned at the end of 2024 that the market could come under pressure
• Analysis company: market correction should initially stop
• Load US tariffs, inflation data & Co.
Forecasts for the S&P 500
Citigroup strategists, led by Scott Chronert, forecast a basic goal of 6,500 points for the market-wide US index S&P 500, an optimistic scenario of 6,900 points and a pessimistic scenario of 5,100 points, as Marketwatch reported.
While the forecasts for the US stock market mostly failed Bullish, an analyst warned of a possible correction. Barry Bannister, Chief Investment Stratege at Stifel, warned at the end of last year that the market could come under pressure in the coming months. He predicted that persistent economic challenges could lead to the S&P 500 in 2025 to close below its level at that time.
Market correction should stop
The S&P 500 was able to grow vigorously last year. In the first quarter of 2025, however, he lost around 4.6 percent in value and ended March at 5,611.85 points.
According to the technical analysis company Fairlead Strategies, the S&P 500 recently met with resistance in the area of its breakdown point of around 5,783 points-however, the US index could soon overcome this resistance.
However, according to the analysis company, the indicators indicate that the current market correction that has influenced the S&P 500 will probably continue from mid to the end of April.
Fear of stagflation
Both the global trade war and current inflation data and data are currently being stressful for the mood of US consumers. According to Marketwatch, unemployment recently indicated a less robust job market, while inflation is further above the target value of the Fed of 2 percent. And so the Misery Index, which forms the sum of inflation rate and unemployment rate, recently climbed, as reported, as Marketwatch reports.
The fact that the US Federal Reserve recently left the key interest rate unchanged and raised the inflation forecast as it corrected the economic growth forecast downwards again.
Editor finance.net