Wall Street strategists see market back-pedaling by year-end, Reuters poll shows

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Don't get too attached to those recent stock market gains, at least according to strategists polled by Reuters.

Wall Street's rally is likely run out of fuel as investors fret about the November presidential election, with the major indexes ending 2020 below current record highs, according to the poll, conducted over the past two weeks.The S&P 500 will end 2020 at 3,300 points, down over 4per cent from current levels, according to the median forecast of about 55 market strategists and fund managers.

Uncertainty about the outcome of the Nov. 3 presidential vote and how it affects markets is becoming a major concern for investors.For weeks ahead of the 2016 election, strategists warned that instability caused by a potential Donald Trump victory would hurt Wall Street, only to see markets rally after he won.

"The market is not pricing in the potential for a Democrat sweep in November, which would create massive headwinds for the economy and the markets," said Synovus Trust portfolio manager Daniel Morgan. Still, many investors worry about the disconnect between the stock market and the U.S. economy, which remains crippled by high unemployment and a resurgence in virus cases in parts of the United States.

 

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