RBC’s Calvasina Sees Risk of S&P 500 Sinking 8% If No Fed Cut
- Says investors still too optimistic on timing of policy easing
- Growth jitters increase given pressure on low-income consumers
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Investors remain too optimistic about the timing of a Federal Reserve interest-rate cut, according to RBC Capital Markets strategists, who see the risk of an 8% slump in US stocks if easing fails to materialize this year.
The team led by Lori Calvasina laid out three year-end scenarios for the S&P 500 Index based on expected corporate earnings, and the outlook for inflation and interest rates.