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BofA Global Research and Oppenheimer Asset Management on Monday became the latest Wall Street research firms to cut their year-end targets for the S&P 500 index to below the 6,000 mark in response to risks from a deepening global trade war.
Investors had been hoping for foreign nations to rush to the negotiating table so the US could avoid the impact from President Donald Trump's latest hefty tariffs.
“tariff increases will be significantly larger than expected'
Banks are scaling back their 2025 outlooks for U.S. stocks as uncertainty about the economy and markets escalates.
The premarket trading of the US indices at the moment looks very negative. However, it is worth noting that the futures selling has abated, and it looks like we are at least trying to stabilize overall.
S&P 500 dives after fresh tariffs spark a global selloff. Traders brace for volatility but watch for rebound as panic-driven losses slow.
The S&P 500 could slump to 4,700, a further 7%-8% decline from Friday's close, if President Donald Trump sticks with his tariff plans or the Federal Reserve doesn't ease interest rates, Morgan Stanley analysts wrote.
Wall Street's biggest bear says the S&P 500 will need to drop below 4,200 before he'd recommend overweighting stocks.
Barring the White House backing down on its tariff plans or signs of easing from the Federal Reserve, investors should brace for the S&P 500 to slide another 7% to 8%.
According to Michael McDonough, Thursday and Friday were the 16th worst 2-day period for the S&P 500 in history.