Future Market Pullback Forecast (Market Pullback#MarketPullback )[[[3]]]:
Practical Analysis Based on Current Data:
. Geopolitical Factors and External Risks:-
- Trade tensions
- Rising tensions between China and the West (such as tariffs on electric vehicles) could disrupt supply chains and pressure corporate profits.
. Sector Analysis:
- Technology Sector
- Technology stocks (such as NVIDIA and Microsoft) have risen over 40% since the beginning of 2024, supported by an AI wave. Any decline in profit expectations could lead to a sharp correction.
Timeframe Expectations and Potential Scenarios :-
- **Most Realistic Scenario (65% Probability)**:
- A pullback of 10-15% in major indices (such as S&P 500) during the third quarter of 2024, driven by:
- Weak corporate earnings reports with slowing consumer demand.
- Federal Reserve announcing a delay in interest rate cuts until 2025.
- Geopolitical escalation in Taiwan or the Middle East.
- Shallow Correction Scenario (25% Probability):
- A pullback of 5-8% with a quick recovery, especially if economic data shows resilience (such as declining unemployment or strong job growth).
- **Overly Optimistic Scenario (10% Probability)**:
- Continued rise with the S&P 500 reaching 6,000 points, supported by a boom in AI or widespread adoption of cryptocurrencies.