untitled design

SP500 index has more room to fall towards 3,000 — Morgan Stanley

Dollar rises as negative earnings revisions appear to be accelerating lower. Thus, Morgan Stanley strategists expect the index SP500 move back towards the 3,000 point level.

Every 1% change in the dollar has a 0.5% impact on SP500 earnings growth

“On a year-over-year basis, the dollar is up 21% and still going up. Based on our analysis that every 1% change in the dollar has a 0.5% impact on SP500 earnings growth, fourth-quarter earnings of the SP500 will face a growth headwind of about 10% all other things being equal.”

“The bear equity market will not end until the SP500 reaches the range of our basic and bear targets, ie between 3,000 and 3,400 later this fall.”

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular