Former JPMorgan strategist Marko Kolanovic predicts S&P 500 pullback - Bloomberg
The S&P 500 is expected to fall as stocks face historically high levels of concentration, former JPMorgan Chase (NYSE:JPM) chief market strategist Marko Kolanovic said, News.Az reports citing Investing.
Speaking with Bloomberg's "Odd Lots" podcast, Kolanovic, who abruptly left JPMorgan last July, warned that an imbalance between the influence of the ten biggest stocks in the market and other equities is not sustainable, adding that a cyclical downturn to "purge" sky-high valuations may be likely.
Prior to his departure from JPMorgan, Kolanovic had been a persistently vocal skeptic of a prolonged, multi-year stock market surge, warning in particular of potential headwinds from easing momentum in AI-powered mega-cap names that have underpinned the rally. Geopolitical tensions and a possible slowing in the U.S. economy were also seen by Kolanovic as risks.
Kolanovic has seemingly stuck to this bearish outlook, telling Bloomberg that he predicts the S&P 500, which entered Monday trading above 6,000 and touched a record high two weeks ago, could be "back down in the 5,000s this year". Potential turmoil under the new Trump administration could also bring index down "much lower into 4,000", Kolanovic told Bloomberg.
Meanwhile, stocks sold off sharply last week after the emergence of a low-cost artificial intelligence model from Chinese start-up DeepSeek. The firm's claims that the model was both cheaper and required less-advanced data, although disputed, raised doubts over the necessity of massive AI spending strategies being pursued by mega-cap tech companies.
Similar news
