Despite the rough start, market experts remain optimistic for a no-recession scenario, which would support stocks and bonds. The long-term bull case many analysts touted at the end of last year is still intact, with Wall Street forecasts for 2024 remaining largely upbeat. However, BCA Research and JPMorgan have expressed concerns about rising geopolitical risks and a weakening consumer.
Key takeaways:
- The S&P 500 saw its first weekly loss in 10 weeks, and bonds also tumbled to kick off 2024, marking the worst start to a year for broader markets since at least 2003.
- Investors are adjusting their outlook for interest rate cuts and recalibrating expectations for the economy, with anticipation of the Federal Reserve's next move looming over them.
- Despite the rough start, market experts maintain optimism for a no-recession scenario, which would support stocks and bonds, and believe the long-term bull case is still intact.
- Wall Street forecasts for 2024, all published before the most recent sell-off, were largely upbeat with firms like Bank of America, RBC, Federated Hermes, and Goldman Sachs predicting the S&P 500 to touch 5,000 this year.