Factbox-Wall Street sees gray skies ahead for equities as Fed tightens policy

div classBodysc17zpet90 cdBBJodivpReuters – With inflation in the United States running at levels not seen in four decades, market participants worry the Federal Reserve has fallen far behind the curve and will need to move aggressively to bring down the prices, which might end up tipping the economy over into a recession.p

pThese concerns have led to a rout in U.S. equities in recent months, and prompted banks to roll out bearish forecasts. [.N]pdivdivdiv classBodysc17zpet90 cdBBJodiv

pHere are some estimates from major banks on the possibility of a recession in the United States: p

p Old p

p Bank Commentary on New yearend PT p

p recession price target p

p for S&P 500 p

p

pp Goldman Estimate a 35 4,300 4,900 p

p Sachs chance of a p

p recession in p

p U.S. in next two p

p years p

p Barclays Plc Risks to S&P 500 4,500 4,800 p

p remain firmly p

p stacked to the p

p downside given p

p numerous p

p negative p

p nearterm p

p catalysts p

p Wells Fargo Expects mild 4,2004,400 4,5004,700 p

p U.S. recession p

p at the end of p

p 2022, early p

p 2023 also cuts p

p yearend 2022 p

p GDP growth p

p target to 1.5 p

p from 2.2. p

p Morgan Says there is a 3,400 p

p Stanley 25 probability p

p for a recession p

p in next 12 p

p months p

p Bank of Sees recession 4,500 4,600 p

p America Corp risks as low p

p for now but p

p elevated for p

p 2023″ p

p Credit Believes there As low as p

p Suisse is a high 3,350 in p

p recession risk bearmarket p

p for U.S. in the scenario p

p second half of p

p 2023 and for p

p Europe this year p

p JPMorgan Says equity 4,900 5,050 p

p Chase & Co markets pricing p

p in too much p

p recession risk p

p Advocates p

p risktaking in p

p U.S. and Euro p

p area equity p

p markets p

p HSBC Expects a severe 4,450 4,900 p

p Holdings PLC slowdown in p

p global growth p

p momentum p

p in Q2 and Q3 p

p Deutsche Sees no 4,750 5,250 p

p Bank AG recession p

p imminently, but p

p warns a p

p prolonged market p

p selloff risks p

p sliding into a p

p selffulfilling p

p recession p

pSource: Research notes from banks, media reports p

p

pp Reporting by Niket Nishant and Manya Saini in Bengaluru Editing by Krishna Chandra Elurip

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv