Despite all the doom and gloom, the SP500 is still not in a bear market and should be able to rally to, ideally, $6,738-7,121 over the coming months.
Heading into earnings season, Q1 growth expectations were revised down by 4.3 percentage points. A key driver of estimate downgrades heading into the quarter appears to be weaker-than-usual forward guidance. The Magnificent-7 are still expected to play a large role in Q1, but the trend is pointing towards a relative rotation into the S&P 493.
“As tariffs are implemented, they will have negative consequences for corporate earnings over the coming months,” notes Apollo Chief Economist Torsten Slok.
Trump tariffs will approach the $1 trillion tax-hike threshold if reciprocal tariffs and an extra 50% tax on Chinese imports take effect at midnight. The post Trump Tariffs: Clock Ticks Down To Nearly $1 Trillion Tax Hike At Midnight; S&P 500 Erases Gain appeared first on Investor's Business Daily.
SPY, IVV and VOO are battling for the position of the world???s top ETF amid wild swings in the S&P 500.
The S&P 500 began the week with three straight daily gains but then “Liberation Day” led the index to its two worst days since March 2020. The index fell 9.1% this week and has re-entered correction territory, sitting 17.42% below its record close from February 19th, 2025.
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“tariff increases will be significantly larger than expected'
Wall Street's biggest bear says the S&P 500 will need to drop below 4,200 before he'd recommend overweighting stocks.
According to Michael McDonough, Thursday and Friday were the 16th worst 2-day period for the S&P 500 in history.
CNBC's Jim Cramer predicts the S&P 500 could drop to 4,000 amid the market collapse that has followed President Donald Trump's tariff announcement.
The drop in the stock market indices on Friday, April 4th shows that the stronger-than-expected jobs report for March '25 was ignored. The expected range of outcomes for “forward” S&P 500 EPS estimates has widened dramatically in the last week. It will be interesting to see what happens with Q2 '25 S&P 500 EPS expected growth rates as we progress through Q1 '25 earnings releases. The new forward four-quarter EPS estimate is $278.96 versus last week's $268.91, for a sequential increase of $10.15.