S&P 500 could drop back under 5000 if there are no US Federal Reserve rate cuts this year
globalreutersMay 28, 20241 Mins read A snippet via RBC on the Fed and the US equity benchmark S&P 500 index.
RBC cite their base model, which eyes consensus forecasts of economic variables, which indicates that the S&P 500 should trade at around 21.5x earnings by the end of 2024
- this would place the index around 5100 to 5300 if their earnings per share (EPS) forecast of $237 for 2024 plays out
RBC though also examine the case where there are no Fed rate cuts during 2024 due to higher-than-expected inflation, and 10-year Treasury yields not rising above 5%:
- P/E ratio could drop to 20.8x
- resulting in the S&P 500 dropping to a range of 4900-5100
This article was written by Eamonn Sheridan at www.forexlive.com.
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