S&P 500 Due For 'Classic 10% Correction,' Wall Street Veteran Warns: Why They Expect Zero Rate Cuts In 2024
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Wall Street veteran investor Ed Yardeni predicts a 'classic 10% correction' for the S&P 500 index in the coming months. This prediction comes as markets digest a scenario where the U.S. economy avoids any hard or soft landing. Yardeni believes that the rise in Treasury yields reflects a growing investor belief that the Federal Reserve may maintain the current federal funds rate throughout the year. He expects the S&P 500 to test its 200-day moving average around 4,700, marking a potential 10% decline from recent highs. Yardeni also mentions that escalating geopolitical tensions in the Middle East and the ongoing conflict between Russia and Ukraine further complicate the situation. He states that investors may have to give up on expecting any rate cut this year.
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