Fed Survey: S&P 500 Forecasts Lowered Amid Policy Uncertainty

S&P 500 Forecast Revision

• 📉 Respondents to the CNBC Fed Survey have lowered their S&P 500 forecasts for the year, marking the first decline since September.
• 🎯 The new forecast sees the S&P 500 finishing the year at 5675, a 1% increase from current levels but a 5% decrease from the January average forecast.
• 💡 This revision erases the optimism seen following the election, with the 2026 forecast also adjusted downwards.

Drivers of Market Weakness

• ⚠️ Policy uncertainty is the primary reason cited for market weakness, with 42% of respondents pointing to it.
• ⚖️ Another 29% believe the substance of policy, rather than uncertainty, is the issue.
• 📈 29% attribute the sell-off to higher valuations, while 15% cite economic weakness.
• ❓ One respondent noted the