Wall Street banks have slashed their targets for the main US share gauge over the past fortnight, as fears grow over the potential economic fallout from President Donald Trump’s trade war.
At least 10 banks, including JPMorgan, Bank of America and Evercore ISI, have cut their estimates for the S&P 500 index in the weeks since Trump’s decision to impose a baseline duty of 10 per cent on most US imports and higher “reciprocal tariffs” sent shockwaves through financial markets.
The S&P 500 has fallen more than 7 per cent in highly volatile trading since the initial levies were announced on April 2, and by 14 per cent since touching a record high on February 19. Trump has since paused the reciprocal tariffs and created a carve-out for smartphones and some other electronics.