Posted 10/23/2023, 5:34:38 PM
S&P 500 Rally to Stall in Second Half as Rates Rise, Strategists Say
- S&P 500 Index peaked in July and unlikely to exceed mid-4,000s in next 6 months due to higher rates weighing on earnings growth
- Stifel Chief Equity Strategist Barry Bannister accurately predicted market rally in 1H 2023, now sees gains stalling in 2H
- Bannister projects 10-year Treasury yield to top around 5% in current cycle, normalize to 6% in mid-2020s
- US stocks seen as range-bound for rest of decade as tighter financial conditions constrain P/E ratios
- Strategists divided on market direction for rest of 2023 - some see further gains while others expect more declines
