US stock market prediction: U.S Stock Market, S&P 500, Nasdaq entering bear market or something more sinister? Wall Street Experts make bold predictions
“This is a speed bump. It’s not a wall where you crash the car and take a little more damage than everyone planned,” said Raheel Siddiqui, senior investment strategist at Neuberger Berman’s Global Equity Research Department.
“Is it something beyond a simple correction, a recession, a bear market, or something worse? I don’t believe we have the prerequisites for that,” he said.
Despite jitters about valuations and market concentration, the bull market has strong fundamentals that encourage risk-taking: the Federal Reserve’s easing of financial conditions, an AI-driven boom in capital spending and a supportive economic backdrop, investors said.
Investors said one of the reasons the stock market downturn attracted attention was that market declines have been rare since tariff-induced selloffs faded in April. The S&P 500 hasn’t fallen more than 3 percent from its last peak since April.
Mike Reynolds, vice president of investment strategy at Glenende Wealth Management, said the sell-off “is just a reminder that volatility exists and is normal.” Investors said the volatility was not due to a fundamental change in the outlook for stocks: “What we’re starting to see now is some fear of heights and fear of taking profits,” said Tobias Hekster, co-chief investment officer at True Partner Capital. “I don’t think we’ve seen any meaningful easing yet.” The biggest risk is overreacting to market weakness, said David Wagner, head of equities and portfolio manager at Aptus Capital Advisors. “I think one of the biggest risks an investor can make right now is to take money off the table,” David Wagner said.
Phil Orlando, chief market strategist at Federated Hermes, said short-term concerns may have rattled stocks in recent sessions, but the long-term outlook remains positive.
However, with the S&P 500 gaining 14 percent for the year and the Nasdaq gaining 19 percent, analysts generally agree that there is a risk that sales will gain momentum and news about the economy may turn negative. With new official data on the economy lacking due to the U.S. government shutdown, investors need to give appropriate weight to each new unofficial report, increasing the risk of overreaction.
“Bull markets don’t die of old age; they die of fear,” said Sam Stovall, chief investment strategist at CFRA, who sees the market could weaken further. “The thing they fear most right now is a recession,” Sam Stovall said.
FAQ
Q1. What are the main indices of the US Stock Market?
A1. The main indices of the US Stock Market are S&P 500, Nasdaq, Dow Jones.
Q2. How did the S&P 500 and Nasdaq perform?
A2. For the year, the S&P 500 is up 14 percent and the Nasdaq is up 19 percent.
