Bank of America analysts project a 2% pullback for the S&P 500 by year-end, citing stubborn inflation, rising interest rate expectations, and historically weak seasonal trends as primary headwinds for the index.
Bank of America analysts see the S&P 500 as overdue for a pullback due to weak seasonality, stubborn inflation, and rate-hike expectations, with a year-end target below the current level.
Bank of America analysts warn that the S&P 500 is overdue for a correction as seasonal weakness and persistent inflation weigh on investor sentiment. Despite a strong year-to-date performance, the firm projects a year-end target of 7,400, signaling a potential 2% decline from recent levels.
The firm points to a combination of weak seasonal trends, persistent inflation, and expectations for interest rate hikes as reasons for a near-term correction.