Home / Metal News / Morgan Stanley, Goldman Sachs and BoA Are Pessimistic, Here Is Why

Morgan Stanley, Goldman Sachs and BoA Are Pessimistic, Here Is Why

iconMay 9, 2023 14:25
Strategists at major Wall Street banks expressed pessimistic views.

Strategists at major Wall Street banks expressed pessimistic views.

Morgan Stanley predicts the S&P 500 will fall to 3,900 by year-end as the economy slows.

Goldman Sachs sees the S&P 500 ending the year at 4,000.

Bank of America strategists are urging investors to "sell on the last rate hike" and expect the S&P 500 to end the year at 4,000.

Historically, the last rate hike by the Federal Reserve has almost always driven the rise of high-risk assets such as stocks, but this rate hike cycle is accompanied by the "triple triplet" of economic recession, banking crisis and worrying corporate earnings prospects. The market may no longer be able to make optimistic expectations.

ING noted that the ECB's most recent survey of bank lending suggests that the upcoming SLOOS survey is "unlikely to be satisfactory". The group stated: "The recent pressures on the banking sector will significantly tighten lending standards, which will have a significant dampening effect on economic activity and significantly reduce the need for further rate hikes."

More popular news

CITI Research Lowers Price Forecast for Nickel, Aluminium and Zinc in 2023-2024 But Bets on Higher Copper Prices

Chinese Lithium Giant Denies Rumours, More Players Extend Industry Chain to Downstream Automakers

Goldman Sachs: China will be the only major economy with positive growth this year, bullish bets on new energy vehicles and biotechnology in the long run

Key April Chinese Economic Data Are Released, Including Real Estate Investment, Industrial Added Value and Consumer Goods Retail Sales

SMM Comment: SHFE And LME Base Metals Mostly Rise, Ferrous Metals And Crude Oil Also Outperform, US Dollar Softens

China’s Central Bank Releases Key April Economic Data: RMB Loans Issued to the Real Economy, Newly-Added Social Financing, Newly Added RMB Loans, Balance of M2, M1 and M0, All Recording Enormous Growth       


IMF: Asia-Pacific To Contribute More Than 70% To Global Economic Growth, With China Being Key Engine

Dollar, Oil, Gold, Base Metals, Ferrous Metals All Go Down, EIA Cuts Oil Price Forecast

IMF: Western Sanctions against Russia Are Ineffective, European Economy Faces Multiple Challenges

Chinese Property Market Still In Downturn, But On Track To Recover With Improving Economy And Favourable Policies, National Bureau Of Statistics Says

China To Actively Expand Domestic Effective Demand And Boost New Energy Vehicle Sales, National Development And Reform Commission Says         

Goldman Sachs, Barclays warn: Fed will not cut interest rates this year


Balance of M2, M1 and M0 All Rise at the End of April, China’s Central Bank Says

India to become Europe’s top supplier of refined oil products after massive purchases of Russian oil

EIA Cuts Brent and WTI Oil Price Forecasts for 2023 as Recession Fears, Inflation and Banking Crisis Overshadow OPEC's Production Cuts


Morgan Stanley, Goldman Sachs and BoA Are Pessimistic, Here Is Why

Global Chip Market Will Decline 20% This Year


Domestic Steel Scrap Prices Plummeted In April

Investment Tycoon Charlie Munger Warns A Storm Is Brewing In US Commercial Property Market And The Golden Age Of Investment Is Over      

Chile’s Latest Move Marks One Step Closer to the Establishment of Lithium Version of OPEC

Sunwoda's "Flash Charge Battery" Can Power Electric Cars 1,000 Kilometres on A Single Charge

Massive Aluminium Capacity In China To Be Resumed Or Put Into Operation In H2 2023

"No One Understands Global Economy Better Than I Do"! Tesla CEO Musk Warns of Severe Recession Looming Large

Accelerating RMB Globalisation Threatens Dollar’s Dominance          

Market forecast

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars