JPMorgan predicts grim outlook for S&P 500 in 2024

JPMorgan's global equity strategy team predicts that the S&P 500 will decline by approximately 8% in 2024 due to a challenging macroeconomic backdrop, softening consumer trends, and elevated geopolitical and political risks. Their projection of the S&P 500 finishing at 4,200 is significantly lower than most other Wall Street strategists. JPMorgan is less optimistic about earnings growth, expecting a 2-3% increase compared to the previous year, citing falling household savings, high borrowing costs, and cooling global demand. They believe that higher costs of credit will eventually slow the US economy, aligning with recent reports from the Federal Reserve and deteriorating outlooks from management teams.