As job market slows and inflation stays sticky, stock markets could correct by 10%, says Stifel stock chief

The US economy is currently in its peak volatile state, and the US Fed Reserve‘s latest decision to issue rate cuts of 50 bps did its little bit to take things back on course. However, a lot is left to be done until the end of the year, in order to keep inflation levels at bay and an incoming recession under control.

Stock market correction on the cards

The latest US jobs data is currently in a very sticky spot, having reached its normal base lines but still in a alert zone. Meanwhile, the stock markets could see a major correction by 10%, as per Stifel stock chief, says Barry Bannister. This major stock price drop could shake the US markets in a major way once the correction begins, and things could end up in the gray area as soon as this plummeting begins.

S&P 500 could see a massive nosedive

Meanwhile, Bannister is also of the opinion that the interest rates are not tipping downwards, below 3% without an economic slowdown. The end of the year correction should be dealt with very cautiously towards the fourth quarter suggest analysts. The biggest blow that could be on the cards is a massive 10% decline of the S&P 500, which has, throughout September, been on the declining side, which has always been its trend over the last few decades. S&P 500 typically stays in its nosediving stage towards the end of the year, and the similar trend is being depicted this year too.

Job market a major sign of economic weakness

The US job market is slowing down steadily, and this has now ended up becoming a major sign of economic weakness, feel economic experts. If things were to indeed get back on track, it could be possible only after the US elections, as the next administration’ economic policies and tax plans could help appease the US markets, only if it is up to the mark.

FAQs:

Is US on the brink of recession?
There are steady recession fears internationally at this point, with the United States leading the pack, with this phenomenon to arrive anytime in coming months.

Is S&P 500 sinking?
S&P 500 has been dipping throughout September, and it could see a further decline in the next few weeks as well, feel economic experts.