Institution: S&P 500 Index may drop by 26% next year

Barry Bannister of Stifel, Nicolaus & Co. predicts that the S&P 500 index is expected to climb another 10%, then change course next year and fall to early 2024 levels. Despite market optimism about the U.S. economy and the Fed's rate cuts, this benchmark index, which has risen by nearly 40% since October last year, is considered too overbought. Analysis of the century-old market frenzy suggests that the S&P 500 index could rise to around 6400 points, then fall back to around 4700 points in 2025, a 26% drop from the expected peak to early this year. He was one of the few to forecast the stock market trend in the first half of 2023, but his bearish predictions have not materialized since then