Fundstrat Strategist Predicts S&P 500 Drop Before Recovery as Fed Pauses Rate Hikes

S&P 500 will likely drop to 4,200, says Fundstrat's Mark Newton, before recovering as Fed is done hiking rates.

Perfect buying opportunity for stocks approaching as they are in the process of bottoming out, Newton predicts.

Short-term volatility likely, but longer-term technical outlook not deteriorated due to military conflict, Newton says.

Tailwinds heading into Q4 make Fundstrat optimistic we're in a bottoming process that could benefit risk assets.

Lingering inflation should ease on its own, Newton says, while robust housing and labor markets could postpone any downturn.