Shares slide after President Donald Trump says new reciprocal tariffs expected this week will include all nations, and Goldman Sachs say US recession more likely
Swiss bank UBS has cut its forecast for the US stock market’s gains this year.
Having previously forecast the S&P 500 shares index would end the year at 6,600 points (which would have been a 12% gain in 2025), UBS have now cut their end-year target to 6,400 points.
“After considering the effects of tariffs and slower growth data so far in 2025, we now expect 6% earnings per share growth, and we have accordingly reduced our year-end target for the index to 6,400 (from 6,600).
But this also means that there is still meaningful upside for broad US equities by year-end, in our view.”
The Nikkei closed down 4%, while European indices are a sea of red. The sell off is broad based, with more than 550 of the Eurostoxx 600 stocks lower as investors take fright ahead of President Trump’s tarrif announcement that is due on Wednesday.
The flight to safe havens has sent the gold price higher by $36 per ounce, and gold is now above $3,122 per ounce. ‘Liberation Day’ for America is bad news for global stocks, and US futures are also pointing to a sharp decline for the S&P 500 later today.
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