The post Analysts now expect Wall Street’s S&P 500 to tumble as low as 3,700 this year appeared on BitcoinEthereumNews.com.

Wall Street analysts are now warning that the S&P 500 could sink to 3,700 this year, even without a full-blown recession. That’s what Chris Senyek, chief investment strategist at Wolfe Research, told clients on Thursday. He said the index could drop anywhere between 3,700 and 4,100 if the U.S. economy slows down, making it a 37% to 30% crash from where it started in January. The S&P 500 has already dropped more than 7% this year and is sitting 11% lower than its peak in February. It officially entered a bear market earlier this month after President Donald Trump dropped his April 2 tariff bomb. Since then, the market has been moving sideways. Earnings expectations collapse under recession fears Chris said the biggest danger right now is what happens if the U.S. slides into a recession. If that happens, he expects S&P 500 earnings per share (EPS) to fall from $266 to $225, which would be a 15% drop. That drop lines up with what has happened in past downturns. “If uncertainty caused by tariff policy were to push the U.S. economy into recession in 2025, we’d expect SPX EPS to fall at least 15% from current levels in line with the median EPS peak to trough over the past four recessions, of 16.7%,” Chris wrote Thursday. He also pointed out that price-to-earnings ratios would shrink in that case. The S&P 500 currently trades at 19.4x earnings. If it drops to the 15-year average of 16.6x or the 10-year average of 18.4x, and EPS hits $225, then the index would crash to somewhere between 3,700 and 4,100. For now, earnings season is off to a solid start. Out of the 157 companies on the S&P 500 that have reported so far, 76% beat expectations. That’s better than what analysts were…

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Filed under: News - @ April 25, 2025 7:26 am