SPY - 'Mild Recession' To Hit Homebuilders Auto Stocks In Second Half Of 2024 Analyst Says | Benzinga
Equity markets have been in retreat so far in 2024 as investors take profits following the strong run in the fourth quarter. Sentiment has been driven by concerns that an economic slowdown could hit corporate earnings in the coming quarters.
On Wednesday, early index futures trading appeared to indicate a flat market open following two days of losses for the S&P 500. The SPDR S&P 500 ETF (NYSE:SPY), an exchange traded fund that tracks the senior index, was up 0.1% in pre-market trade, while the Invesco QQQ Trust (NYSE:QQQ), which tracks stocks on the NASDAQ 100, was up 0.2% following a two-day loss of 1.7%.
Since late October, risk sentiment has been riding high, with many stock indexes trading close to record highs.
But niggling doubts about whether the U.S. economy can avoid a recession in 2024 surfaced earlier this week following purchasing manager data that showed that activity in the manufacturing sector had slowed further during December.
Nomura Sees Recession In Second Half Of 2024
Analysts at investment bank Nomura believe the U.S. economy will continue to shrink and be in a “mild recession” in the second half of the year, with tight financial conditions weighing on cyclical sectors such as housebuilders and consumer discretionary items such as automobiles.
“We do not see a clear catalyst for financial stress, but growth downturns can reveal hidden vulnerabilities or ‘break' otherwise healthy markets,” said Nomura’s lead analyst Aichi Amemiya.
He added: “The past ...