BRICS: JP Morgan Predicts Huge US Stock Market Crash

Vinod Dsouza
JP Morgan CEO Jamie Dimon
Source: CNBC

Leading global investment bank JP Morgan has predicted a major US stock market crash. The bank remains cautious on the S&P 500 index noting that a 20% downside could be on the cards. JP Morgan’s doomsday stock market prediction comes when BRICS is looking to uproot the dollar and damage the US economy.

Also Read: Major U.S. Sector To Be Affected If BRICS Ditches the Dollar

The US economy will lead to its own undoing with BRICS having little to bring it down, according to JP Morgan. The banking firm noted that the largest 20 US stocks have surged more than 27% in value year-to-date (YTD). The stocks have outperformed the S&P 500 index which surged nearly 16% YTD. The top 20 US stocks also outpaced the Russell 2000 which is up only 1.73% YTD.

Also Read: BRICS: India Looks To Reject New Memberships in 2024

BRICS: US Stock Market Could Crash 23%, Warns JP Morgan

us dollar usd currency bills brics

JP Morgan has forecasted that a major correction could hit the top 20 US stocks making the markets tank. It warned that the S&P 500 index could crash to a low of 4,200, a drastic decline of 23%. If the US stock market dips 23% according to JP Morgan, BRICS currencies will gain strength in the forex markets.

Also Read: BRICS: 2 New Developing Countries Apply To Join Alliance in 2024

While the US stock market will look at ways to stop the crash, BRICS could cause further damage by cutting ties with the dollar. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. JP Morgan’s bearish forecast for the US stock market is bullish for BRICS as it wants to pull the dollar down.

The weakening of the US dollar is a boon to BRICS which wants to push local currencies ahead for trade. JP Morgan has already warned that the US dollar could dip in the next few decades and BRICS could make the most out of the decline.