Wall Street Firms Cut S&P 500 Targets Amid Trade War Fears

BofA Global Research and Oppenheimer Asset Management have reduced their year-end targets for the S&P 500 index below the 6,000 mark, citing risks from an escalating global trade war. The S&P 500, down over 20% from its peak, signals a looming bear market amid fears of a potential recession from U.S. tariffs.

BofA Global Research and Oppenheimer Asset Management became the most recent Wall Street firms to lower year-end targets for the S&P 500 index below 6,000 due to growing trade war risks.

Oppenheimer adjusted its target to 5,950 from 7,100, while BofA cut theirs to 5,600 from 6,666, making it one of Wall Street's lowest estimates. The S&P 500 fell further on Monday, marking a decline over 20% from its peak, heading towards confirming a bear market.

Global stock markets are experiencing significant sell-offs as investors move to safe-haven assets, concerned that President Trump's tariffs might cause a recession in the U.S. economy. John Stoltzfus of Oppenheimer stated, "At current levels, the equity market appears oversold with uncertainty at levels investors find hard to embrace." Oppenheimer reduced its earnings-per-share estimate for the index by 3.6% to $265 but maintained an "overweight" stance on U.S. equities.

(With inputs from agencies.)