Wall Street Analyst Predicts Possible Stock Market Drop of 5% or More by End of 2024

Wall Street Analyst Predicts Possible Stock Market Drop of 5% or More by End of 2024
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Vet­er­an Wall Street ana­lyst Sam Sto­vall warns that the US stock mar­ket could see a decline of 5% or more by the end of 2024. Sto­vall, the chief invest­ment strate­gist at CFRA Research, cit­ed recent data show­ing declin­ing con­sumer con­fi­dence impact­ing the strong tech sec­tor rally.

While tech con­tin­ues pow­er­ing ahead, Sto­vall cau­tioned that it remains the only out­per­form­ing sec­tor. He ques­tioned how long gains can be sus­tained on a sin­gle engine. Com­par­ing a poten­tial down­turn to a post-meal “reset­ting of the dials,” Sto­vall said pre­vi­ous mar­ket highs were often fol­lowed by drops of at least 5%.

Sto­val­l’s fore­cast comes after a strong first quar­ter for the S&P 500 index. How­ev­er, he not­ed that 14 of the top 15 his­tor­i­cal first quar­ter returns were then fol­lowed by declines. Any unfore­seen bad eco­nom­ic news, like a bank fail­ure, could halt the mar­ket’s rise.

Bank of Amer­i­ca and for­mer CEOs have sep­a­rate­ly voiced con­cerns about a loom­ing slow­down due to high infla­tion and inter­est rates weigh­ing on con­sumer and busi­ness spend­ing. As most Amer­i­cans invest retire­ment sav­ings in stocks, a 5% or larg­er fall would sig­nif­i­cant­ly impact many households.

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