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Trading desks across Wall Street are bracing for more losses in the S&P 500 this quarter, even amid Wednesday’s green wave. According to Bloomberg, traders at major banks say the rally doesn’t change the bigger picture: President Donald Trump is about to drop new tariffs, and they expect it to hit stocks hard. Goldman Sachs, Bank of America, and others said the Wednesday announcement will likely bring more volatility to a market that just came out of its worst quarter since 2022. The expected trade measures are being flagged as a trigger for more selling pressure, not a turnaround. Traders across Wall Street expect deeper pullback Goldman Sachs sent out a note on March 28 saying, “The bearish calls are getting louder across the floor and client base.” The note said this week’s volatility could look a lot like what markets saw during the U.S. election in November. JPMorgan Chase is staying tactically bearish, too, pointing to policy risk and the economic drag of new tariffs as key issues for the second quarter. Alexander Altmann, global head of equities tactical strategies at Barclays, said the problem is that Trump’s announcement might be vague. That kind of uncertainty, he said, keeps investors frozen. “Uncertainty is the killer of everything in markets,” Altmann told Bloomberg. “It kills investment decisions, corporate spending, as well as business and consumer confidence.” Stock heat map. Source: TradingView Wall Street’s biggest sell-side strategists are also stepping back. At the end of last year, they predicted the S&P 500 would climb for the third year in a row. Their average year-end target was 6,600. Now, three of the most optimistic ones have admitted they overshot. They still say the market might climb in the final three quarters of 2025, but they’re not betting on it yet. Some desks…

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Filed under: News - @ April 2, 2025 4:22 pm