{"id":264947,"date":"2024-06-20T13:35:22","date_gmt":"2024-06-20T13:35:22","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=news&p=264947"},"modified":"2024-06-20T13:35:22","modified_gmt":"2024-06-20T13:35:22","slug":"experts-foresee-30-drop-in-us-stocks-by-next-year-heres-why","status":"publish","type":"news","link":"https:\/\/www.techopedia.com\/news\/experts-foresee-30-drop-in-us-stocks-by-next-year-heres-why","title":{"rendered":"Experts Foresee 30% Drop in US Stocks by Next Year: Here’s Why"},"content":{"rendered":"
The US stock market is having a field day. The S&P 500 has increased by 14%, while the NASDAQ has experienced a gain of 18%.<\/strong><\/p>\n Many analysts are still bullish for the rest of the year, but risks remain. Some economists have already warned<\/a> that the US stock market might crash next year. Let\u2019s try to uncover why.<\/p>\n BCA strategist Roukaya Ibrahim has recently warned that stock markets might see a reversal of fortunes as early as next year. She sees a 30% drop in overall valuations as significant downside risks remain to be addressed.<\/p>\n In an interview with Bloomberg TV<\/a>, she mentioned that the S&P 500 can drop to 3,600 when the next recession<\/a> hits. She said that while the job markets look strong, the unemployment rate is expected to rise. It is important to mention that corporate bankruptcies rose 88% in April, marking the highest level in the past 12 months.<\/p>\n Around nine companies worth $50 million filed bankruptcy, and this number is expected to reach 25 in the coming days, as per veteran analyst<\/a> Danielle DiMartino Booth.<\/p>\nAnalysts on Recession: Possible Reasons<\/span><\/h2>\n
US Job Cuts To Increase<\/span><\/h2>\n