The S&P 500 is already flashing signs of a recession as key stocks have plunged, economist David Rosenberg says

• The S&P 500 is already signalling an oncoming recession, according to top economist David Rosenberg.
• The Rosenberg Research chief highlighted a slump in consumer discretionary, transportation and banking stocks as evidence.

The S&P 500 is flashing signs of a recession as stocks closely linked to the real economy have tanked, according to top economist David Rosenberg.

"The question always comes – why isn't the S&P 500 signalling a recession? Answer: it is," the Rosenberg Research chief said in a tweet on Thursday.

"The most economic sensitive areas are down -33%: transports, consumer discretionary and banks. Behaving as they did heading into the 1990-91, 2001 and 2007-09 downturns," he added.

Rosenberg's forecast comes despite the benchmark index rising about 7.7% this year.

Bank stocks have taken a big hit this year thanks to the fallout from Silicon Valley's shocking collapse. A wave of deposit runs and credit-crunch fears have spooked investors, subsequently weighing on small and mid-sized bank stocks, including PacWest and Western Alliance.

Rosenberg hasn't shied away from gloomy forecasts about the US economy. The veteran economist recently predicted a recession has already hit US corporate profits.

Markets guru Larry McDonald also warned of an oncoming recession in a recent Insider interview, saying the S&P 500 could crash nearly 30% by December as dwindling corporate profits, less government spending and banking stress weigh on stocks.