Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Wells Fargo says history suggests at least a 5% drop in S&P 500

AuthorSam Boughedda
Published 02/14/2024, 07:41 AM
Updated 02/14/2024, 07:44 AM
© Reuters. Wells Fargo says history suggests at least a 5% drop in S&P 500

History suggests there will be at least a 5% slide in the S&P 500, according to Wells Fargo in a note Wednesday.

While not providing further details on the claim, the bank's equity analysts said in their brief note that an equity sell-off was sighted yesterday, and the expected 1H24 volatility lift started.

"History suggests at least a 5% SPX slide. Focus on positioning: overweight Comms/Health Care/Utes; underweight Energy/Industrials," the analysts wrote.

They added that they prefer software over hardware and that GDP strength supports a Fed Funds re-pricing.

Wells Fargo notes that the communications sector and growth are white-hot, with communications remaining the bank's top offensive idea in 2024 "as valuation, technicals, and fundamentals suggest there is more scope for outperformance."

Meanwhile, energy and value are flat-to-down this year. "Without an economic recovery and a rapid acceleration of EPS growth, we expect firms with significant operating leverage (such as cyclicals) to flounder," the analysts said.

Latest comments

5% drop after hitting record highs is hardly the end of the world
"History suggests ..", should not read further, if someone makes forecast based on past data. Most fundamental mistake of all possibl
there has never been such a bull run in the history of the world
what a bold prediction, NOT. At least means it could be 5% or as much as 100%. With no max drop and no time frame for this prediction it is just dribble.
They must be shorting.
Cant reduce rates too quickly…may effect positive but wont be sustainable unless control on inflation
ai boom may not allow 5% decline. Fed should reduce rates. Else fire inefficient fed officials
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.