May 16, 2022.
With the stock market falling for the last six weeks in a row amid growing concerns about an economic slowdown and the Federal Reserve raising interest rates to combat inflation, an increasing number of Wall Street experts are warning of recession risks.
Markets are struggling as more experts warn of a downturn.
Tech stocks have nose-dived in recent months, pushing the S&P 500 to the edge of bear market territory.
Goldman Sachs became the latest major firm to slash its market outlook on Monday, citing higher interest rates and lower economic growth than previously assumed, though stocks could still bounce back later in the year.
Goldman chief economist David Kostin lowered his year-end price target for the S&P 500 to 4,300 from 4,700, implying roughly 7% upside from the index's current level of around 4,000, but a 9% decline from 2021.
A growing number of economists warn about a looming downturn, even though some forecasts insist a recession isn't in the cards.
The Federal Reserve has to go on high alert as the economy struggles to deal with high inflation.
Lloyd Blankfein, the former CEO of Goldman, told CBS that the possibility of a recession is very high and that there is only a narrow path to safety.
The recent market selloff has raised recession fears, with declines led by previously soaring technology stocks. When inflation is high and the Federal Reserve is working hard, recessions happen more often than not.
Despite the economic contraction in Q1, most economists and economic models do not currently forecast a looming recession. Economists still expect second-quarter GDP to rebound by up to 3% even after the U.S. economy contracted in the first quarter.
Markets are down for the sixth week in a row.
The S&P 500 hit a new low in 2022.
Wall Street thinks of Mcdonald's, Dollar General, and Visa.
The stock market has fallen for the fifth straight week.
All Rights Reserved © 2024
