US stocks traded mostly lower on Monday as Wall Street sized up the potential for an economic
recession over the next year following six straight …
US stocks traded mostly lower on Monday as Wall Street sized up the potential for an economic
recession over the next year following six straight weeks of losses for the S&P 500. Former Goldman Sachs CEO Lloyd Blankfein told CBS News’ Face The Nation that the US is at a « very, very high risk of recession » on Sunday. « If I were running a big company, I would be very prepared for it. If I was a consumer, I’d be prepared for it », he said. Separately, analysts at Goldman Sachs downgraded their US GDP forecast and said the S&P 500 could fall another 11% to 3,600 in the event of a recession. Meanwhile, Morgan Stanley’s Mike Wilson said a recession is possible and any bounce in the stock market should be viewed as a bear market rally with more downside still to come. Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:
JPMorgan’s Marko Kolanovic said in a note on Monday that the stock market is pricing in too high of a chance of an economic recession, and that ultimately earnings are proving resilient.
