Banks reduce their prospects for 2025 for American actions, because uncertainty about the economy and the markets degenerates.
The S&P 500 benchmark could drop to 4,700, an additional drop from 7% to 8% compared to Friday’s close, if President Donald Trump sticks to his pricing plans or if the federal reserve does not facilitate interest rates, Morgan Stanley analysts wrote.
Analysts said they had offered a level of technical support from 5,100 to 5,200 years for the S&P 500 last Thursday, but noted that “with the market that was exchanged quickly on Friday and the night contracts on the night down 3 to 5% so far, our thoughts are turning to the next support area, which is close to the 200 -week mobile average, or 4700.”
Oppenheimer analysts reduced their objective to 5950, a premium of 17% at the end of Friday, from 7100. Read Investor Live coverage of today’s trading here.
“The equity market appears in our opinion,” wrote Oppenheimer’s analysts, “with uncertainty at levels, investors have trouble adopting with what we call” a negative pitch book “apparently projects negative results infinite which is taken pending in the short term of merchant, investor and feeling of consumption.
The index closed at 5,074.08 Friday, after having been seventh week in the past 25 years, a drop of more than 9%. S&P term contracts are down 2.7% early on Monday.
“The evaluations also offer better support for this price so that investors are prepared for another potential drawback of 7 to 8% compared to the end of Friday if there is no line of view in a less severe commercial environment and that the Fed remains firmly pending,” analysts of Morgan Stanley wrote.
So far, Trump has not shown any signs of drop in prices, while Fed officials have chosen to maintain their stable key interest rate. The president of the Fed, Jerome Powell, said on Friday that the larger than expected prices of Trump could stir up inflation and the slowdown in economic growth.
This article has been updated to add the context and the new Oppenheimer’s estimate.
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