US stock market sentiment tumbles as trade wars heat up

The US stock market has fallen sharply, pressured by fears of a long-running trade conflict. Reuters reports that after losing over 17% since its February's high, the S&P 500 index is now fluctuating amid the Trump administration's comments on new large-scale tariffs.

Strategists from Wall Street do not rule out a further decline in the indicator. Miller Tabak’s Matthew Maley predicts the S&P 500 to fall to 4,000 points. In the same breath, he emphasizes the complexity of the stock market problems. A slowdown in consumer activity is evident, he says, because the markets have inflated expectations of profits from artificial intelligence (AI).

Some experts are anticipating more grim forecasts of how events will unfold. According to Evercore ISI, in the most extreme case, the index could fall to 3,100 points, which would mean a loss of nearly half its value since it peaked in February. Potential risks include a recession and credit market difficulties, among others.