Swing To Trade
  • Stock
  • Politics
  • Business
  • Sports
Stock

Is the bull market over? Barclays cuts S&P 500 target, citing recession risks

by admin March 26, 2025
March 26, 2025

A growing sense of caution is sweeping through Wall Street, with Barclays becoming the latest major bank to temper its expectations for the stock market following a volatile start to the year.

Concerns about tariffs, weakening economic data, and the increasing possibility of a recession are prompting analysts to reassess their outlook for 2025.

Barclays strategist Venu Krishna slashed his 2025 S&P 500 (^GSPC) price target to 5,900 from a previous estimate of 6,600, citing the potential impact of tariffs and what he described as “deteriorating” economic data.

The S&P 500 currently trades around 5,822, down approximately 2.3% year to date.

The investment bank’s revised forecast reflects an expectation that S&P 500 companies will face reduced earnings due in large part to tariffs imposed by the Trump administration.

Krishna cut his views on the economically sensitive Consumer Discretionary and Industrials sectors to Negative from Neutral.

Krishna wrote:

We think it will be tough for stocks to work versus deteriorating consumer sentiment, lower growth, higher inflation and tariffs. Industrials look expensive versus history and are exposed to both trade policy and tenuous manufacturing PMI amid factories front-running tariffs and government contract cancellations.

Amidst the broader caution, Barclays identified a potential bright spot, upgrading its outlook on Financials to Positive from Neutral.

The firm anticipates that the financial sector could benefit from deregulation once the uncertainties surrounding tariffs are resolved.

Joining the chorus: Wall Street’s growing concerns

Barclays’ decision to lower its S&P 500 price target follows a similar move by Goldman Sachs earlier this month, signaling a broader shift in sentiment on Wall Street.

This increased caution comes as economic anxieties continue to rise.

JPMorgan strategist Bruce Kasman raised eyebrows last week by calling out a 40% recession probability for this year.

That is the second-highest on Wall Street. Goldman Sachs’ chief economist Jan Hatzius said he thinks the market will be negatively surprised by tariffs should they go into effect on April 2 as the Trump administration suggested.

The wobbly economy also continues to play out in the data.

The weak data shows spending at US retailers last month was much weaker than expected, per the latest retail sales report.

Big companies Delta (DAL), FedEx (FDX), and Nike (NKE) have warned on near-term demand trends this month.

“We have to be realistic,” former director of the National Economic Council and current IBM vice chair Gary Cohn said on the Opening Bid podcast.

Gary Cohn, a former director of the National Economic Council said:

Ambiguity is the No. 1 enemy of a market. When a company creates ambiguity in their earnings profile, in their growth profile, in their business model, the market will punish that stock. When politicians, legislators create ambiguity in the way that taxes are going to work, the way that capital gains are going to work, the way that they’re going impose tariffs, they create ambiguity to a market and the market as a whole reprices.

The post Is the bull market over? Barclays cuts S&P 500 target, citing recession risks appeared first on Invezz

previous post
Playtika stock soars 21% after BofA double upgrade: what investors need to know
next post
Dollar Tree says it’s winning over higher-income shoppers and may offset tariffs with price hikes

Related Posts

Why did China summon Nvidia after US trade...

July 31, 2025

Microsoft tops $4 trillion as AI boom lifts...

July 31, 2025

What to expect from Amazon’s earnings

July 31, 2025

Here’s what Robinhood CEO has to say about...

July 31, 2025

Tether Q2 2025 profit hits $4.9B as USDT...

July 31, 2025

Google to invest $6 billion in Andhra Pradesh,...

July 30, 2025

PANW stock tanks after CyberArk acquisition deal but...

July 30, 2025

Telefonica scales back Huawei use in Europe, maintains...

July 30, 2025

What made Marvell stock pop 10% on Wednesday?

July 30, 2025

UBS issues a bold call on Peloton stock,...

July 30, 2025
Join The Exclusive Subscription Today And Get Premium Articles For Free

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • Why did China summon Nvidia after US trade talks?

      July 31, 2025
    • Microsoft tops $4 trillion as AI boom lifts Nasdaq, S&P 500 to new records

      July 31, 2025
    • What to expect from Amazon’s earnings

      July 31, 2025
    • Here’s what Robinhood CEO has to say about renewed meme stock phenomenon

      July 31, 2025
    • Tether Q2 2025 profit hits $4.9B as USDT supply crosses $157B

      July 31, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 SwingToTrade.com All Rights Reserved.

    Swing To Trade
    • Stock
    • Politics
    • Business
    • Sports