The stock market has been on a rollercoaster ride. Two major banks have recently lowered their predictions for the S&P 500.  This is a clear sign that market experts are feeling unsure about the future.  This uncertainty comes right after a big announcement.  The President raised tariffs on imported goods.  This move has sent shockwaves through the market.  The S&P 500 has taken a big hit.  It has dropped more than 8% this week alone.  This is the biggest weekly drop since 2020.  The index is now in what is called a "correction. "  This means it has fallen more than 10% from its recent high.  Overall, the S&P 500 is down over 13% for the year.  It is also 17% below its all-time high in February.

One of the banks, RBC, has cut its year-end target for the S&P 500 by more than 10%.  This new target suggests that the index could drop by more than 5% from where it ended last year.  RBC has also lowered its earnings per share prediction for the S&P 500.  This is a big deal because earnings are a key driver of stock prices.  The other bank, Wells Fargo, has also lowered its prediction.  It now expects the S&P 500 to end the year with a return of just 2%.  This is a significant drop from its previous forecast of a 12% gain.  Wells Fargo also expects slower economic growth and higher inflation in 2025.  The bank has reduced its earnings per share prediction for the S&P 500.  This is due to impaired sentiment and cooling economic growth.

The tariffs are expected to have a big impact on the market.  They could weigh on spending and profit margins.  They could also lead to higher prices for goods and overall inflation.  This is a complex situation.  It is important to stay informed and think critically about how these changes might affect the market and the economy.  The market is always changing.  It is important to stay informed and think critically about how these changes might affect the market and the economy.

Stock Market Shakes: Big Banks Lower Their Predictions

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