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The S&P 500 could fall around 500 points in a swift correction, Stifel strategists warned.
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The investment firm said falling inflation was a “pipe dream,” and Fed rate cuts could be delayed.
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Markets see just one or two rate cuts by the end of the year, per the CME FedWatch tool.
The S&P 500 could be on the verge of a sharp move down, as inflation isn’t cooling much further from here, according to Stifel analysts.
In a note, the investment firm predicted the S&P 500 would fall to 4,750 in the second or third quarter of this year. That implies around a 10% decline from the benchmark index’s current levels at around 5,222 on Monday.
Inflation will likely remain stubbornly high, the strategists predicted, as the economy is coming out of what they described as a “pseudo-recession” that took place…
