Experts suggest further decline of S&P 500 due to rising recession threat in US — Yahoo Finance

Wide-ranging import tariffs announced by the US President in early April are still keeping investors on edge. Despite a 90-day pause in the implementation of the restrictive measures against most of the countries, US recession fears are not subsiding. Several experts, according to Yahoo Finance, predict a further decline in the American stock market.

Ritholtz Wealth Management chief market strategist Callie Cox says that the S&P 500 index tends to drop well below today's levels in the run-up to an economic downturn. The current levels could indicate either that investors have underestimated the extent of the index's decline or that it is one of the mildest stock market reactions to a potential recession in the United States. Morgan Stanley strategist Mike Wilson has a similar opinion on the matter.

Goldman Sachs estimates a 45% chance of a recession in the US over the next 12 months. This is well above the historical average for the same period of 15%. Mark Zandi, chief economist of Moody's Analytics, predicts a 60% chance. The US will be able to avoid a negative scenario only if Trump's tough tariffs are rolled back, the expert emphasizes.