{"id":24689,"date":"2025-04-18T20:33:52","date_gmt":"2025-04-18T20:33:52","guid":{"rendered":"https:\/\/financialrush.com\/?p=24689"},"modified":"2025-04-18T20:33:52","modified_gmt":"2025-04-18T20:33:52","slug":"wall-street-slashes-stock-market-forecasts-amid-trump-tariff-fears","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=24689","title":{"rendered":"Wall Street slashes stock market forecasts amid Trump tariff fears"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description\">Your guide to what the 2024 US election means for Washington and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=3996c9d4-774f-4d48-affa-9a2fb121c20f&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Wall Street banks have slashed their targets for the main US share gauge over the past fortnight, as fears grow over the potential economic fallout from President Donald Trump\u2019s trade war.<\/p>\n<p>At least 10 banks, including JPMorgan, Bank of America and Evercore ISI, have cut their estimates for the S&amp;P 500 index in the weeks since Trump\u2019s decision to impose a baseline duty of 10 per cent\u00a0on most US imports and higher \u201creciprocal tariffs\u201d sent shockwaves through financial markets.<\/p>\n<p>The S&amp;P 500 has fallen more than 7 per cent in highly volatile trading since the initial levies were announced on April 2, and by 14 per cent since touching a record high on February 19. Trump has since paused the reciprocal tariffs and created a carve-out for smartphones and some other electronics. <\/p>\n<p>But economists say that the uncertainty caused by rapid U-turns in trade policy could still slow economic growth, or even trigger a recession \u2014 something that would hit the earnings of listed US companies. <\/p>\n<p>\u201cThe goldilocks sentiment in place entering this year has given way to abject uncertainty,\u201d said Citigroup analyst Scott Chronert in a note.\u00a0<\/p>\n<p>Wall Street\u2019s average end of year S&amp;P target now\u00a0stands at 6,012 \u2014 compared with 6,539 at the end of last year. The S&amp;P 500 finished this week at 5,283. <\/p>\n<p>The new forecasts mean that, despite growing worries about slowing economic growth, strategists nevertheless expect the index to rise 14 per cent over the coming months. It would mark a gain of just 2 per cent for 2025, a major slowdown from the back-to-back rallies of more than 20 per cent in 2023 and 2024. <\/p>\n<p>The Banks\u2019 newly cautious tone marks a humbling reversal since the start of the year, when many market participants had expected lower taxes and lighter regulation under a Republican administration to boost corporate profits. <\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A5feeb775-0f02-488d-b8ff-5abdd38e963f?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A5feeb775-0f02-488d-b8ff-5abdd38e963f?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A5feeb775-0f02-488d-b8ff-5abdd38e963f?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A5feeb775-0f02-488d-b8ff-5abdd38e963f?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A5feeb775-0f02-488d-b8ff-5abdd38e963f?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4e7596ce-a926-4aa0-8684-e0aa83944447?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4e7596ce-a926-4aa0-8684-e0aa83944447?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4e7596ce-a926-4aa0-8684-e0aa83944447?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><\/picture><\/figure>\n<p>Citigroup on Friday said it expects the S&amp;P 500 to end the year at 5,800, down from a previous call of 6,500. The bank also lowered its 2025 earnings per share estimate to $255 from $270, just below the average forecast of $262, Bloomberg data shows.\u00a0<\/p>\n<p>Chronert said that the recent sharp fall for US equities may become \u201cthe first bear market specifically triggered by US presidential actions\u201d. <\/p>\n<p>JPMorgan lowered its \u201cbase case\u201d target on April 7 to 5,200 from 6,500, assuming \u201cpartial\u201d relief on tariffs. \u201cEven though we do not believe US Exceptionalism is over,\u201d the bank wrote at the time, \u201cthis [liberation day] shock came at a time when valuation was rich, positioning was crowded and leadership was particularly narrow.\u201d<\/p>\n<p>Peter Berezin at BCA Research, who has the lowest 2025 price target for the S&amp;P 500 among analysts surveyed by Bloomberg, said in mid-February that he expects the index to close out this year at about 4,450, implying a drop of 15 per cent from current levels. In early March he said a US recession was likely to begin within the next three months.<\/p>\n<p>\u201cThere\u2019s a lot of groupthink on Wall Street,\u201d said Berezin.\u00a0<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/3996c9d4-774f-4d48-affa-9a2fb121c20f\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what the 2024 US election means for&hellip;\n","protected":false},"author":5,"featured_media":24690,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-24689","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/24689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24689"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/24689\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/24690"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}