Reported 10 months ago
RBC's Lori Calvasina and team predict an 8% potential decline in the S&P 500 if the Federal Reserve does not cut interest rates this year. They outline three scenarios based on corporate earnings, inflation, and interest rates, with the index potentially falling to 4,900 points if the Fed holds rates, inflation remains high, and the 10-year Treasury yield stays below 5%. Calvasina suggests a 5% decrease in the S&P 500 if expected rate cuts don't align with projected earnings, and a more bearish scenario could see a 16% drop due to inflation and Fed rate hikes.
Source: YAHOO