Clocktower's chief macroeconomic strategist Eric Wallerstein warns that rate hikes and rising energy prices could push the S&P 500 down nearly 20% in 2027, comparing the setup to the market's 2022 slump. The warning lands as the index and other major U.S. benchmarks already traded lower, with volatility climbing.
Clocktower's chief macroeconomic strategist Eric Wallerstein warned that the S&P 500 could fall to 6,300 in 2027, nearly 20% below current levels.
He compared the setup to 2022, when the stock market's slump was largely blamed on interest-rate hikes, slumping bonds and energy shocks from Russia's invasion of Ukraine. Wallerstein sees similar fallout building again amid rate hikes and rising energy prices.
The warning came as U.S. stocks already retreated. The S&P 500 fell 0.75% to 7,706.03, the Dow Jones Industrial Average dropped 0.68%, and the Nasdaq Composite lost 1.13%.
Volatility rose alongside the declines. The CBOE Volatility Index climbed 6.39% to 16.15, and the 10-year Treasury yield stood at 5.126%.
Source: MarketWatch (snippet-based)
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