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Wall Street Cuts Stock Markets Expectations

As Israel’s war with Hamas escalates, souring traders’ risk appetites and dragging the S&P 500 Index into a correction, some mainstay equity optimists are scaling back their positive views on what the final months of 2023 will bring.

Oppenheimer lowers S&P 500 target after lifting to Street high.

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Bloomberg on Walls Street market expectations

A Federal Reserve pause, seasonal tailwinds, an earnings-led rally. Many of the reasons that got Wall Street strategists increasingly bullish coming into the end of the year now look like wishful thinking

Oppenheimer & Co.’s John Stoltzfus, a long-time stock market bull, lowered his year-end forecast for the US equity benchmark to 4,400 from 4,900, previously the highest among forecasters tracked by Bloomberg. While he remains positive on stocks, he says there’s not enough time in the year for the index to reach his previously projected level as geopolitical risk and interest-rate worries afflict equities.

“We still think that a Santa Claus rally is possible. But between now and Thanksgiving, it’s easier to see downside than upside for the stock market given the unsettling developments in the Middle East and jitteriness in the bond market,” the Yardeni Research founder said in a note to clients on Monday.

A flurry of Wall Street prognosticators ramped up their outlooks for US equities from June through September after failing to call a big rally that shaped markets in the first part of the year. Strategists at heavyweights including Bank of America Corp., the Goldman Sachs Group Inc., and Citigroup Inc. were all among those who lifted their forecasts.



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