Wall Street predicts increased volatility in the US stock market, Morgan Stanley expects: S&P 500 may drop up to 5% in the first half of the year

Multiple Wall Street strategists have warned that volatility in the U.S. stock market is rising, with Morgan Stanley's Michael Wilson reminding investors to remain vigilant about the prospects of economic slowdown under the trade war. This strategist, who has been bearish on the stock market until mid-2024, stated that Trump's tariff policies and declining fiscal spending will hurt corporate profits, predicting that the S&P 500 index could drop by as much as 5% to around 5,500 points in the first half of this year. The benchmark index closed at 5,770 points on Friday. Market forecasters from institutions such as JP Morgan and Canaccord Genuity have tempered their bullish expectations for U.S. stocks this year, as Trump's tariff measures have raised concerns about economic slowdown. The S&P 500 index has fallen approximately 2% this year, with investors questioning the high valuations of large technology stocks