Wall Street research firms are warning of a possible correction in the S&P 500, following its recent 30% surge since April. The benchmark index trades at 6,316 and has returned 10.40% over the past three months.
Analysts from Morgan Stanley, Evercore ISI, and Deutsche Bank predict a modest to significant pullback in the third quarter, with some foreseeing a drop of up to 15%. These predictions are based on concerns about the effects of tariffs, euphoria among investors, and negative seasonality.
Historically, the S&P 500 has performed poorly in August and September, with average losses of 0.7% over the past three years. The recent rally has led some experts to question whether the market is due for a correction. As consumers begin to feel the effects of tariffs, investors may start to pull back, leading to a potential downturn in the index.
Source: https://www.tipranks.com/news/sp-500-could-plummet-10-says-morgan-stanley