Stock market outlook: S&P 500 could swing 20% on the way to 4,200

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Stock market outlook: S&P 500 could swing 20% on the way to 4,200
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The S&P 500 could see a 20% swing and reach 4,200 this year as the market weathers a mild 'economic malaise,' says Wells Fargo stock strategist

The S&P 500 could see a 20% swing this year as the market navigates a mild economic downturn, according to Wells Fargo's head of equity strategy Chris Harvey. on Tuesday, he said there's downside risk of the S&P 500 falling to 3,400, representing a roughly 15% decline from current levels.

"We think that, again, what you're facing is more of an economic malaise, not a sharp sell-off, not something that's going to be horrific," Harvey said."And as a result, we can muddle through that." The Fed hiked rates by 425 basis points last year and is expected to approve a few more quarter-point increases in 2023, bringing the peak rate to about 5%.

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