The S&P 500's Downside Risk Looms as Growth Concerns Mount
US stocks are at risk of slumping another 5% on worries about the hit to corporate earnings from tariffs and lower fiscal spending, according to Morgan Stanley’s Michael Wilson. The strategist expects the S&P 500 (^GSPC) to hit a low of about 5,500 points in the first half of the year, before recovering to 6,500 by end-2025. His year-end target implies a rally of 13% from current levels.
- This bearish outlook highlights the fragility of market sentiment when faced with uncertainty around growth and inflation, underscoring the importance of staying informed on macroeconomic trends.
- How will the prolonged period of low growth expectations impact the long-term investment strategies and portfolio allocations of individual investors and institutional clients?