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S&P 500 could break below the 3,000 level: Jamie Dimon

By:
on Oct 10, 2022
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  • Dimon says the U.S. economy will likely be in a recession in six to nine months.
  • The JPMorgan CEO sees a possibility of another 20% decline in the S&P 500.
  • The benchmark index is already down 15% from its recent high in mid-August.

The U.S. economy will likely be in a recession by the summer of 2023, says Jamie Dimon. He’s the Chief Executive of JPMorgan Chase & Co.

Highlights from Dimon’s interview with CNBC

Dimon agreed the economy, for now, was in good shape and consumers were still spending 10% more on a year-over-year basis.

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But runaway inflation, continued rate hikes, quantitative tightening, and the Ukraine war, he warned in an interview with CNBC’s Julianna Tatelbaum are all pointing to a possible recession in the not-so-distant future.

These are very serious things, which I think are likely to push the U.S. and the world into some kind of a recession six to nine months from now.

Dimon, however, refrained from commenting on how severe that recession could be.

S&P 500 could lose another 20%

More alarming for investors, though, was his forecast for the S&P 500.

The benchmark index is already down 15% from its high in mid-August. But Jamie Dimon says another significant move to the downside is not off the table.

I think the likely place you’ll see more of a crack and more of a panic is credit markets. S&P 500 may have a ways to go. It could be another easy 20% and the next 20% will be much more painful than the first.

If true, that forecast places S&P 500 below the 3,000 level. Last month, the U.S. Federal Reserve also agreed that chances of a “soft landing” would be rather slim as it continues to lift rates to fix inflation.