Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 16, 2023.
The bank projected a 2024 price target for the benchmark S&P 500 (.SPX) of 4,200, or about 8% below current levels.
Absent rapid easing of monetary policy by the Federal Reserve, "we expect a more challenging macro backdrop for stocks next year," J.P. Morgan's Dubravko Lakos-Bujas and his team said in an outlook report on Wednesday.
"In contrast to this robust outlook, we expect lower sequential revenue growth, no margin expansion, and lower buyback executions," the strategists wrote.
Those risks include two major wars and 40 countries holding national elections including the U.S., which the strategists expect will drive equity volatility to be generally higher in 2024 than in 2023.
Brendan McDermid, Morgan, Dubravko, J.P, Lewis Krauskopf, Nick Zieminski
New York Stock Exchange, REUTERS, Federal Reserve, Thomson
New York City, U.S