Evercore ISI cuts S&P 500 year-end target as Fed's tough talk raises probability of a recession

The Federal Reserve's signal to risk a recession in its inflation fight caused Evercore ISI to slash its market forecast on Thursday.

The Wall Street firm cut its year-end S & P 500 target to 3,975 from 4,200. The new target is still about 5% higher than Wednesday's close of 3,789.93, but would represent a 16% decline for 2022. "Stocks' reaction to the FOMC reflects that a rising probability of recession requires further discounting," Evercore's Julian Emanuel said in a note to clients.

25%, the highest since early 2008. The central bank also signaled that it will raise rates as high as 4.6% in 2023 before ending its inflation battle. The central bank believes that aggressive rate hikes are poised to slow down the economy. The Summary of Economic Projections from the Fed showed the unemployment rate is estimated to rise to 4.4% by next year from its current 3.7%. Meanwhile, GDP growth is forecast to slump to just 0.2% for 2022.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CNBC /  🏆 12. in US

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Two-year Treasury yield at highest since 2008 after Fed talks toughInvestors wary of government debt after Wednesday's rate hike by the Federal Reserve was accompanied by resolutely hawkish rhetoric from Fed Chair Jay Powell.
Read more »

Asian Stock Market: Traces weaker S&P500 on ultra-hawkish Fed guidance, oil weakensMarkets in the Asian domain have shifted into a bearish trajectory after tracing negative cues from S&P500. Asian equities have fallen dramatically af
Read more »

S&P 500 Futures track Wall Street’s losses on Russia-led woes, yields reverse post-Fed fallS&P 500 Futures track Wall Street’s losses on Russia-led woes, yields reverse post-Fed fall – by anilpanchal7 SP500 Equities Fed YieldCurve RussianFederation
Read more »

S&P 500 Holds Onto Gains Ahead of Crucial FOMC Rate DecisionS&P 500 remains rangebound ahead of massive FOMC decision. Fed expected to raise rates by 0.75%, eyes on SEP.
Read more »

Fed feeds recession fears, Japan jumps in to support yen By ReutersFed feeds recession fears, Japan jumps in to support yen
Read more »