{"id":1525105,"date":"2022-06-21T12:34:28","date_gmt":"2022-06-21T16:34:28","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1525105"},"modified":"2022-06-21T12:34:30","modified_gmt":"2022-06-21T16:34:30","slug":"investment-banks-predict-how-much-more-stock-market-could-plummet","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/investment-banks-predict-how-much-more-stock-market-could-plummet\/","title":{"rendered":"Investment Banks Predict How Much More Stock Market Could Plummet"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finvestment-banks-predict-how-much-more-stock-market-could-plummet%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1525105&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The S&#038;P 500, a key <a href=\"http:\/\/dailywire.com\/topic\/wall-street\">stock market<\/a> index, could drop another 15% to 20% before fully adjusting to a looming <a href=\"http:\/\/dailywire.com\/topic\/recession\">recession<\/a>, according to a recent analysts\u2019 note from investment bank Morgan Stanley.<\/p>\n<p>\u201cThe bear market will not be over until recession arrives or the risk of one is extinguished,\u201d the note predicted, per <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-21\/goldman-morgan-stanley-strategists-see-more-stock-market-losses?sref=3REHEaVI\">Bloomberg<\/a>. Meanwhile, analysts from Goldman Sachs said stock traders were only pricing in a mild recession, \u201cleaving them exposed to a further deterioration in expectations.\u201d<\/p>\n<p>The month of June has been marked by a <a href=\"https:\/\/www.dailywire.com\/news\/wall-street-sees-worst-carnage-since-2020\">series of selloffs<\/a> amid dismal news on <a href=\"http:\/\/dailywire.com\/topic\/inflation\">inflation<\/a>, as well as the <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">most aggressive move<\/a> to combat inflation from the <a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\">Federal Reserve<\/a> in nearly 30 years. While the Dow Jones Industrial Average and the Nasdaq Composite fell 4.8% during the week ending on June 17, the S&#038;P 500 was down 5.8% \u2014 marking its worst week since 2020, according to <a href=\"https:\/\/www.cnbc.com\/2022\/06\/16\/stock-market-news-futures-open-to-close.html\">CNBC<\/a>.<\/p>\n<p>More <a href=\"https:\/\/www.dailywire.com\/news\/bloodbath-on-wall-street-as-stock-market-plunges-into-bear-territory\">selloffs occurred<\/a> during the week ending on June 10 \u2014 the day upon which the U.S. <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">Bureau of Labor Statistics<\/a> announced that the Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that <a href=\"https:\/\/www.dailywire.com\/news\/inflation-reaches-8-6-setting-new-four-decade-high\">inflation hit new four-decade record highs<\/a> and once again surpassed economists\u2019 expectations. The Dow fell 2.5%, the Nasdaq fell about 3%, and the S&#038;P 500 fell 2.7% by the end of the week, according to <a href=\"https:\/\/www.nbcnews.com\/business\/markets\/dow-falls-inflation-hits-40-year-high-consumer-sentiment-rcna32950\">NBC News<\/a>.<\/p>\n<p>On June 14, a <a href=\"https:\/\/www.dailywire.com\/news\/wall-streets-key-recession-indicator-just-went-off\">yield curve inversion<\/a> \u2014 a phenomenon in the bond market that <a href=\"http:\/\/dailywire.com\/topic\/wall-street\">Wall Street<\/a> watches as a key recession indicator \u2014 made the financial world uneasy. An inverted yield curve historically precedes recessions by six months to two years, as indicated by data from the <a href=\"https:\/\/fred.stlouisfed.org\/series\/T10Y2Y\">Federal Reserve Bank of St. Louis<\/a>.<\/p>\n<p>The Federal Reserve\u2019s benchmark interest rate is now between 1.5% and 1.75%. Although rate hikes increase the cost of borrowing money and thereby slow economic activity, central bankers are <a href=\"https:\/\/www.dailywire.com\/news\/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker\">prepared to hike interest rates again<\/a> next month if high inflation persists.<\/p>\n<p>While Democratic officials inside the Biden administration have insisted that a recession is not inevitable, former Democratic economic advisers lean in the opposite direction.<\/p>\n<p>Larry Summers, who led the Treasury Department under the Clinton administration and served as National Economic Council director under the Obama administration, <a href=\"https:\/\/www.dailywire.com\/news\/top-obama-economic-advisor-whole-range-of-indicators-point-to-coming-recession\">said over the weekend<\/a> that \u201ca whole range of indicators\u201d point to a contraction.<\/p>\n<p>\u201cThe dominant probability would be by the end of next year we will be seeing a recession in the American economy,\u201d Summers told NBC News host Chuck Todd, noting that his view is widely shared among forecasters.<\/p>\n<p>However, current Treasury Secretary Janet Yellen acknowledged the economic woes while remaining <a href=\"https:\/\/www.dailywire.com\/news\/yellen-recession-not-inevitable-russias-war-to-blame-for-soaring-inflation\">as optimistic as possible<\/a>.<\/p>\n<p>\u201cI expect the economy to slow,\u201d Yellen told ABC News host George Stephanopolous. \u201cIt\u2019s been growing at a very rapid rate, as the economy, as the labor market, has recovered. We have reached full employment. It\u2019s natural now that we expect a transition to steady and stable growth, but I don\u2019t think a recession is at all inevitable.\u201d<\/p>\n<p>President Joe Biden <a href=\"https:\/\/www.dailywire.com\/news\/watch-biden-pushes-back-at-reporter-over-recession-warnings-dont-make-things-up\">shot down a question<\/a> from a reporter on Monday about recessionary risks during his walk on Rehoboth Beach in Delaware.<\/p>\n<p>\u201cThe majority of them aren\u2019t saying that,\u201d Biden said. \u201cCome on, don\u2019t make things up, okay? Now you sound like a Republican politician. I\u2019m joking. That was a joke, but all kidding aside, I don\u2019t think it is.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&#038;P 500, a key stock market index, could drop another 15% to 20% before fully adjusting to a looming recession, according to a recent analysts\u2019 note from investment bank Morgan Stanley. \u201cThe bear market will not be over until recession arrives or the risk of one is extinguished,\u201d the note predicted, per Bloomberg. Meanwhile, &#8230;<\/p>\n","protected":false},"author":99,"featured_media":597353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1525105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1525105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1525105"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1525105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/597353"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1525105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1525105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1525105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}