Institution: The S&P 500 Index may plummet by 26% next year

Barry Bannister of Stifel, Nicolaus & Co. predicts that the S&P 500 index is expected to rise another 10%, then change course next year and fall to the level at the beginning of 2024. The strategist said in a report on Tuesday that despite market optimism about the U.S. economy and Federal Reserve rate cuts, this benchmark index has risen too much, nearly 40% since last October.

He said an analysis of century-long market frenzies suggests that the S&P 500 could rise to around 6400 points before falling back to around 4700 points in 2025, a drop of about 26% from its anticipated peak down to levels seen earlier this year. He is one of few who predicted US stock trends for the first half of 2023 but his bearish predictions have not been realized since then.