The latest NASDAQ forecast is now available. The NASDAQ index has suffered the most from rising interest rates. As part of its fight against inflation, the Fed raised interest rates by 75 basis points in June and will do so again. Investors fear a rate hike will cause a recession. The instability in Ukraine and China’s zero COVID have made the economic slump worse than expected. The forecast model predicted a near-term uptick followed by a downturn.
What Are the Factors Influencing the Markets?
Concerns about economic growth arise as a result of high inflation, rising commodity and energy prices, geopolitical unpredictability as a result of the Russia-Ukraine conflict and weakening demand. The Federal Reserve has begun to tighten monetary policy in order to contain inflation. It is unclear whether this will lead to a decrease in economic activity. Consumers’ spending habits have become more frugal. The issue of rising costs is harmful to growth and technology stocks because it reduces earnings and profit margins.
Economy and the NASDAQ Forecast
In June, a major inflation report showed another increase after prices rose at the quickest pace in decades. The Fed is raising interest rates to contain inflation. Supply chain difficulties from COVID-19 delays and the Ukraine crisis have fueled fears of another recession. The economy will decline by 2024, if not this year. Are we in a recession? Everyone has a strong view about when the U.S. economy will decline. With so much focus on timing, most Americans are concerned about severity. Investors don’t know if the Fed can lower inflation without prolonging a recession. If that happened, inflation would worsen consumer sentiment.
The earnings season is quickly approaching, and it will provide much-needed context about corporate America and the economy. That will give investors more confidence in the markets’ future. Analysts predict the slowest earnings growth for the S & P 500 since late 2020. Energy prices, supply chain bottlenecks, and company executives’ outlook for the rest of the year will affect stock prices. In this uncertain environment, investors and market watchers will be all over corporate outlooks.
How to Make Money Investing When Inflation Rises
Stock investing becomes more strategic as inflation rises and the Ukraine-Russia crisis worsens. Value stocks and commodities benefit from inflation. A high earnings-to-price ratio characterizes value stocks. During inflation, value stocks beat growth stocks. Productivity increases as demand increases. Commodities are seen as safe haven assets in uncertain times. But commodity prices are extremely volatile. To succeed, you must choose stocks carefully.
The May SP 500 Forecast Model
You may find more information about the S&P 500 May forecast model by visiting this page.