SocGen Says S&P 500 Melt-Up to 3,400 Is Likely But Unsustainable

The equity rally that’s built on hopes for a growth rebound won’t last as the U.S. economy is heading for a “mild recession” next year, according to Societe Generale.

While the S&P 500 might climb to 3,400 in coming months amid buoyant sentiment, the market will then reverse course as the economy contracts in the second and third quarters of 2020, the firm’s strategist Sophie Huynh predicted. As a result, the benchmark index may experience a decline of at least 10% before recovering to finish the year at 3,050. The year-end target represents about a 2% loss from current levels.