The market sell-off has intensified, prompting many strategists on Wall Street to reassess their year-end forecasts. Four major firms – Bank of America, Evercore ISI, Oppenheimer, and JPMorgan – have reduced their S&P 500 targets.
Bank of America lowered its target to 5,600 from 6,666, indicating a potential decline of 4.8% from the start of the year. Analyst Savita Subramanian warned that a decline below 4,000 would represent a 35% drop, worse than typical recessionary declines.
Evercore ISI cut its forecast to 5,600 from 6,800, citing the uncertainty caused by President Biden’s post-WWII restructuring plans as “messy business.” The prolonged uncertainty has raised asset volatility, damaged confidence, and increased the risk of stagflation or outright recession.
Oppenheimer slashed its S&P 500 forecast to 5,950 from 7,100, citing a need to adjust expectations due to the market’s reaction to recent tariff announcements. Analyst John Stoltzfus noted that “cooler heads” may prevail in trade negotiations, but for now, investors are right-sizing their expectations.
JPMorgan lowered its target to 5,200, signaling an 11.3% decline by 2025 compared to the 2024 close. Strategist Dubravko Lakos-Bujas attributed the downturn to valuation concerns, crowded positioning, and leadership issues. The lack of a “Trump Put” has fueled the selling pressure.
These firms are not alone in their warnings. Wells Fargo and RBC Capital Markets also reduced their year-end S&P 500 targets on Friday, citing tariff uncertainty as a major factor. The S&P 500 fell 4% on Friday, its largest one-day decline since March 2020, bringing it near a bear market decline of 20%.
Source: https://www.cnbc.com/2025/04/07/four-more-wall-street-strategists-cut-sp-500-target-on-trumps-tariffs.html