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The S&P 500 is in for a 5% drop, according to CFRA’s Sam Stovall.
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The veteran strategist warned of a veteran backdrop for stocks.
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The market could see its first “crack on the ice” in the tech sector, he warned.
The stock market is in for a correction, as a trio of unfavorable factors will weigh on equity prices, according to Sam Stovall, chief investment strategist of CFRA Research.
The Wall Street veteran pointed to the strong performance of stocks so far this year, with the S&P 500 up 15% in 2024. However, the benchmark index is poised to dip 5%, he predicted, thanks to the bearish setup in interest rates, inflation, and stock valuations.
Inflation is declining but is still above the Federal Reserve’s 2% target, leading central bankers to project just one rate cut by the end of the year.
Higher rates have triggered the longest-ever inversion of the 2-10…
