A sharp decline in U.S. stocks has raised fears of more severe market scenarios, driven by concerns over a prolonged global trade war and a dimmer corporate profit outlook. Investors are contemplating the possibility of the S&P 500 falling by nearly half from its February peak. Matthew Maley of Miller Tabak suggests a decline to 4,300 is plausible, with a drop to 4,000 or lower not out of the question. Analysts warn that current earnings expectations may not adequately reflect the economic damage from tariffs. A recession could lead to a 24% average annual drop in earnings, according to Ned Davis Research. Some relief could come if tariffs are eased, but without such measures, the market may face further challenges. — new from Reuters
