While the S&P 500 has bounced back to a two-week high in recent days, there’s still plenty of concern about the economic impact of sweeping US tariffs that are planned for April 2. US equity futures edged higher on Tuesday, with investors wary about President Donald Trump’s erratic trade policy and confusing exemptions.
The chief strategist at UBS Investment Bank said the “visibly tiring” US consumer is set to further pressure stock prices, setting the stage for another 8% slump in the S&P 500.
Bhanu Baweja said indicators such as employment expectations, spending outlook and consumer confidence are all flashing warning signs. He expects the S&P 500 to drop as low as 5,300 points as analysts cut profit estimates for the next three to four months.
