S&P 500 forecast after the JOLTS data today

December 05, 2023 08:15 AM PST | By Invezz
Follow us on Google News:

S&P 500 is roughly flat at writing even after the U.S. Bureau of Labour Statistics reported a steep decline in job openings for October.

Labour market seems to be loosening up

That metric stood at 8.73 million last month – down 6.6% and well below 9.4 million that economists had forecast.

Note that the number of monthly job openings has not visited such a low level since March 2021. What it suggests is that the labour market is starting to loosen up. Still, Chris Senyek – the Chief Investment Strategist of Wolfe Research sees weakness ahead for the S&P 500.

Senyek is dovish primarily because the market is “pricing in an immaculate everything scenario” including a soft landing and 150 basis points of rate cuts in 2024.

The benchmark index is currently up 13% versus late October.

S&P 500 could pull back to the 4,250 level

A sharp decline in job openings saw vacancies to available workers ratio down to 1.3:1 in October – versus 2:1 just a few months ago.

But the return of risk appetite to the norm will be a headwind for the U.S. stocks in the coming year, said Chris Senyek in a research note on Tuesday.  

We see disappointments ahead as a reversal of last year’s wealth effect, the lagged impact of past rate hikes, and a broad-based tightening of financial conditions sparks a modest recession.

All in all, the Wolfe Research expert warns of a pullback in S&P 500 to the 4,250 level which suggests about an 8.0% downside from here. Earlier this week, JPMorgan also said the benchmark index could revisit the 3,500 level (read more). Watch here: https://www.youtube.com/embed/LlVqWsjdfm8?feature=oembed

The post S&P 500 forecast after the JOLTS data today appeared first on Invezz


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies