JPMorgan has revised its year-end target for the S&P 500 down to 7,200 points from 7,500, citing rising oil prices linked to the Iran conflict as a significant risk factor. The bank highlighted that the market might be underestimating the economic impact of increased energy costs, which could dampen consumer demand and hinder economic growth. Historically, oil price spikes exceeding 30% have often led to reduced demand and preceded recessions.
The S&P 500 recently fell below its 200-day moving average, signaling potential further declines. JPMorgan suggests that if selling pressure persists, the index could find support between 6,000 and 6,200 points. Despite expectations of an economic recovery later this year, supported by investment and stimulus, the bank warns that ongoing geopolitical tensions may limit the extent of this recovery.
JPMorgan Cuts S&P 500 Target Amid Oil Price Surge and Geopolitical Risks
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