The S&P 500 (^GSPC) dropped 19% from its record high following President Trump’s announcement of severe tariffs on April 2. However, the index has since rebounded slightly due to a pause in the most aggressive duties for 90 days. Wall Street experts warn of uncertainty and volatility in the short term, with an elevated chance of recession.
Analysts predict long-term consequences, including permanent reductions in economic growth and living standards. Wedbush analyst Dan Ives calls President Trump’s tariffs “the worst policy mistake in the last 100 years.” JPMorgan CEO Jamie Dimon warns that economic fragmentation from allies may be disastrous.
Despite this, many analysts remain optimistic about the S&P 500’s future prospects. A majority of investment banks and research firms have set an average year-end target of 6,100, implying a 13% upside from its current level. However, uncertainty will likely continue to plague businesses for several months, leading to more stock market volatility.
The long-term effects of tariffs are uncertain, but predictions suggest slower economic growth and fragmentation of alliances. Historically, tariffs have raised costs and prices, leading to lasting economic harm. Data gathered over five decades from 151 countries supports this assertion.
For now, investors must navigate the volatile landscape, weighing the potential risks and rewards of the S&P 500’s future performance.
Source: https://www.fool.com/investing/2025/04/17/stock-market-crash-tariffs-wall-street-happen-next