Investors should brace for a potential slump in US stocks, as this year’s rally looks increasingly unsustainable given the risk of higher interest rates, according to Wells Fargo’s global market strategist.
The benchmark S&P 500 share index is up about 12% so far in 2023 — thanks in part to bets that recent declines in inflation will allow the Federal Reserve to start reversing some its rate hikes. However, inflation is still high — the latest reading was more than twice the Fed’s 2% target — and that suggests further rate rises can’t be ruled out, Paul Christopher said in an interview with CNBC.
