Wall Street week ahead: Recession fears loom over US value stocks

BofA Global Research on Thursday cut its year-end target price for the S&P 500 to 3,600 from 4,500 previously and became the latest Wall Street bank to forecast a coming recession

Fears of a potential economic slowdown are clouding the outlook for value stocks, which have outperformed broader indexes this year in the face of surging inflation and rising interest rates.

Value stocks - commonly defined as those trading at a discount on metrics such as book value or price-to-earnings - have typically underperformed their growth counterparts over the past decade, when the S&P 500's gains were driven by tech-focused giants such as Amazon.com Inc and Apple Inc.