Morgan Stanley, Goldman Strategists See More Stock Market Losses
- SG’s Kabra sees S&P 500 sinking 30% in 70s style stagflation
- Equities reflecting a mild recession: Goldman’s Oppenheimer
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US stocks are staging a furious rally on Tuesday but top strategists at Societe Generale SA and Goldman Sachs Group Inc. warn of more declines ahead as equities have yet to fully price in the risk of a recession.
The technology-heavy Nasdaq 100 and the S&P 500 each surged more than 2.6% on Tuesday following a sharp rout last week that sent the US benchmark index into a bear market. While the selloff is luring investors chasing cheaper valuations, SocGen’s Manish Kabra says a “typical” recession will see the S&P 500 Index falling to 3,200 points-- nearly 13% below its Friday close before the holiday.