• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
Citigroup cuts S&P 500 target to reflect blend of recession, ‘soft landing’ scenarios

Citigroup cuts S&P 500 target to reflect blend of recession, ‘soft landing’ scenarios

June 27, 2022
Asda in Cannock given one out of five food hygiene rating – the second worst possible score

Asda in Cannock given one out of five food hygiene rating – the second worst possible score

August 10, 2022
Another Republican Who Voted To Impeach Trump Goes Down – Trump Mocks Her For ‘Stupidly’ Playing Into Democrats’ Hands

Another Republican Who Voted To Impeach Trump Goes Down – Trump Mocks Her For ‘Stupidly’ Playing Into Democrats’ Hands

August 10, 2022
Ian Ziering and More Send Support to 90210 Star Denise Dowse

Ian Ziering and More Send Support to 90210 Star Denise Dowse

August 10, 2022
Aissatou Tounkara: Manchester United Women sign France defender | Football News

Aissatou Tounkara: Manchester United Women sign France defender | Football News

August 10, 2022
Thriving sugarcane industry benefits people from both China and Myanmar border area

Thriving sugarcane industry benefits people from both China and Myanmar border area

August 10, 2022
New Samsung foldables Galaxy Z Fold4 & Z Flip4 specs & price

New Samsung foldables Galaxy Z Fold4 & Z Flip4 specs & price

August 10, 2022
US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed

US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed

August 10, 2022
New England Biolabs® Introduces Faustovirus Capping Enzyme, a Novel Enzymatic mRNA Capping Solution for mRNA Manufacturing

New England Biolabs® Introduces Faustovirus Capping Enzyme, a Novel Enzymatic mRNA Capping Solution for mRNA Manufacturing

August 10, 2022
Saturn skywatching: See the ‘lord of the rings’ at its best this month

Saturn skywatching: See the ‘lord of the rings’ at its best this month

August 10, 2022
Kylie Jenner Is 25: Look Back at All of Her Scorching Bikini Pics

Kylie Jenner Is 25: Look Back at All of Her Scorching Bikini Pics

August 10, 2022
U.S. inflation shows signs of peaking as prices go unchanged

U.S. inflation shows signs of peaking as prices go unchanged

August 10, 2022
Soul food restaurants in Houston – DefenderNetwork.com

Soul food restaurants in Houston – DefenderNetwork.com

August 10, 2022
  • Home
  • Life Style
  • Politics
  • Science
  • Entertainment
  • Fashion
  • Sports
  • Travel
  • Business
  • Food & Drink
  • CBD
Wednesday, August 10, 2022
  • Login
WDC TV NEWS
  • Home
  • Life Style
  • Politics
  • Science
  • Entertainment
  • Fashion
  • Sports
  • Travel
  • Business
  • Food & Drink
  • CBD
No Result
View All Result
WDC TV NEWS
No Result
View All Result

Home Uncategorized

Citigroup cuts S&P 500 target to reflect blend of recession, ‘soft landing’ scenarios

by wdctvnews staff
June 27, 2022
in Uncategorized
0
Citigroup cuts S&P 500 target to reflect blend of recession, ‘soft landing’ scenarios
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Citigroup analysts have cut their S&P 500 target for this year by 500 points to 4,200, after stubbornly high inflation spurred the Federal Reserve to aggressively raise interest rates.

“Fed hawkishness and the rising real rate impact on valuations has been a defining feature” of the stock market drawdown in the first half of 2022, Citigroup analysts said in a research note on U.S. equity strategy after the market’s close Friday. Their revised target is above the S&P 500’s
SPX,
-0.34%
trading level early afternoon Monday of around 3,915, according to FactSet data, at last check.

The U.S. stock market has slumped in 2022, with the S&P 500 falling into a bear market amid investor fears that the Fed risks pushing the economy into a recession as it battles the hottest inflation in about 40 years. Bearish positioning combined with “better than feared earnings and signs of peaking rates,” sets up a “positive” second half of the year, according to the Citi note.

“Our base 4700 target in place since early March accounted for geopolitical overhang on valuations but with an economic soft landing,” the Citi analysts said. Their revised S&P 500 target for 2022 was determined by blending their “soft landing” and recession scenarios. 


CITI RESEARCH NOTE DATED JUNE 24, 2022

Citi economists now peg odds of a global recession at 50%, according to the note.

“We suspect that recession timing is skewed toward mid-’23,” the bank’s analysts said. “Lingering inflation and risk of stagflation have not been resolved,” they said, adding that “earnings risk is a bigger issue for next year.”

Last week Morgan Stanley’s chief U.S. equity strategist Mike Wilson warned that the stock market was not pricing in the risk of recession, which could send the S&P 500 to around 3,000. 

Read: Recession is challenging inflation as top fear among stock and bond investors

U.S. stocks opened modestly higher Monday after fresh economic data showed new orders for durable goods in May were stronger than forecast. The S&P 500 was struggling for direction in early afternoon trading Monday, while the Dow Jones Industrial Average
DJIA,
-0.27%
was up 0.1% and the Nasdaq Composite
COMP,
-0.73%
was down 0.4%, FactSet data show, at last check. 

Meanwhile, the Citi analysts said that “a series of macro indicators continue to support an 8% top down earnings growth picture for this year.” They wrote that “earnings resiliency as valuations have largely rightsized” has set the stage for their latest call for the S&P 500.

“We admittedly have been overly optimistic regarding U.S. equities thus far this year,” the Citi analysts said. “We expect a U.S. equities rebound” during the second half of 2022, “which will only lessen the full year drawdown.”

The S&P 500 has dropped almost 18% in 2022 based on early afternoon trading Monday, according to FactSet data.



Source link

Tags: BlendCitigroupCutslandingrecessionReflectscenariosSofttarget
Share196Tweet123Share49
wdctvnews staff

wdctvnews staff

Sponsored Links

WDC TV NEWS

Copyright © 2017 WDC TV NEWS.

Navigate Site

  • Terms and Conditions
  • Privacy
  • Privacy Policy
  • Cookie Privacy Policy
  • Contact Us
  • DMCA
  • Disclaimer
  • Advertisement

Follow Us

No Result
View All Result
  • Home
  • Life Style
  • Politics
  • Science
  • Entertainment
  • Fashion
  • Sports
  • Travel
  • Business
  • Food & Drink
  • CBD

Copyright © 2017 WDC TV NEWS.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
error: Content is protected !!
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?