Is the Stock Market Going to Crash? A New Fed Forecast Offers a Big (and Ominous) Clue.
Excluding the COVID-19 pandemic, this would mark a first for the U.S. economy since 2009.
Since the bear market bottomed out in October 2022, the bulls have been in firm control on Wall Street. The mature-stock-powered Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) have all rocketed to numerous record closing highs.
Catalysts have been aplenty for investors, with everything from the rise of artificial intelligence to Donald Trump's return to the White House propelling the stock market higher. During President Trump's first term in the Oval Office, the Dow Jones, S&P 500, and Nasdaq Composite rose by 57%, 70%, and 142%, respectively.
But based on a recently updated forecast from the Federal Reserve Bank of Atlanta, the stock market's party may come to an abrupt end.
