AI air pocket, struggling consumer could prove a double whammy for stocks next year, says Bank of America

Core Viewpoint - The S&P 500 is expected to face numerous headwinds in the upcoming year, leading to limited potential for outsized gains according to Savita Subramanian [1] Group 1: Market Outlook - The anticipated challenges for the S&P 500 include rising interest rates and inflationary pressures, which are likely to dampen overall market performance [1] - Subramanian suggests that investors should temper their expectations for significant returns from the index in the near term [1] Group 2: Economic Indicators - Key economic indicators such as consumer spending and corporate earnings are projected to show slower growth, contributing to a more cautious investment environment [1] - The potential for a recession remains a concern, which could further impact market dynamics and investor sentiment [1]