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Peter Davis

An writer at FOMOdrive

  • Sep 23, 2023
  • 2 min read

S&P 500: BofA warns of worst part of the year

Since the start of the week, the S&P 500 has dropped by almost 3%, with the decrease becoming more rapid over the last two days.

BofA is predicting that this year will be one of the worst in history for stocks.

There is a pessimistic outlook in the high-tech sector according to Citi.

BofA has increased its prediction for the S&P500 index to grow by the end of the year.

As September draws to a close, Bank of America research has revealed that the last ten days of the month are historically the worst 10-day period of the year for the S&P 500 index. RBC reports that during this period, the index has fallen 60% of the time.

Despite the negative close of September, the bank is still optimistic about the future performance of stocks. The S&P 500 is still above a significant support level and is still in a bullish trend.

Goldman Sachs has cautioned that October could be a challenging time for the stock market. This is due to the fact that companies usually publish their quarterly and annual reports during this month, which often leads to increased market volatility.

There is a bearish outlook in the high-tech sector, as evidenced by the NASDAQ 100 tech index, which has dropped by almost 8% since July.

Last week, investors in NASDAQ 100 Index (NDX) futures were more bearish than bullish, with the number of short positions exceeding the volume of long positions. This suggests that investors are expecting the rally of big tech stocks to come to an end, and are preparing for a potential decline in the NASDAQ 100.

BofA has increased its prediction for the S&P 500 index to one of the most optimistic on Wall Street by the end of the year.

The bank has revised its estimate of the index at the end of the year, now expecting it to close at 4,600 points - a 6.3% increase from Thursday's close and a noticeable jump from the previous estimate of 4,300 points. This should be supported by positive statistics and quarterly reports, providing a boost to the stock market.

According to a Reuters poll of 41 strategists, the S&P 500 is expected to close out the year at 4,496, which is a 4% increase from its current level. This would represent a 17% growth from the end of 2022.

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