JPMorgan Cuts S&P 500 Forecast, Citing ‘Earnings Recession’ Risk
- Strategist lowers 2016 year-end target to 2,000 from 2,200
- U.S. stocks could see two years of flat to negative EPS growth
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JPMorgan Chase & Co. cut its forecast for U.S. stocks by 9.1 percent, saying heightened market volatility could damage the broader economy and bring about an earnings recession.
Dubravko Lakos-Bujas, head of U.S. equity strategy at the firm, now sees the Standard & Poor’s 500 Index ending the year at 2,000, down from a prior prediction 2,200. His new forecast makes JPMorgan the most bearish on American stocks among 19 firms tracked by Bloomberg. It implies a 6.5 percent increase from Monday’s close and compares with the average of 2,200 by 18 other Wall Street peers.