Market sales are not finished yet, as consumer and business trust creeps into tariff uncertainty. “We believe that selling US stocks will go further,” wrote Binky Chadha, chief strategist at Deutsche Bank, on Saturday. “We hope that positioning will continue to unravel as trade policy uncertainty is likely to continue to increase until at least April 2nd.” “If we move to the bottom of the positioning band we played in the last trade war, the S&P 500 will be 5250,” Chada added. The S&P 500 level highlighted by Chadha points out an additional 6.9% decline from Friday’s 5,638.94 ending. The benchmark was about 8% less than the all-time high reached last month. At the heart of the .SPX YTD BAR S&P 500 strategists’ appeal is concerns about an economic slowdown amid uncertainty that is unlikely to be alleviated in the coming weeks at least. The latest revenue season shows CEOs are cutting capital expenditures and reducing revenue forecasts. Chada also hopes for the idea of ”Trump put” to facilitate his policy that has destabilized the market — will not be realized until Trump’s approval ratings are significantly lower. “Compared to the level of consumer confidence, current approval rates are high, meaning there is plenty of room for the downside due to negative growth and inflation development that are likely to speed up catchdowns,” Chada wrote. “We expect that the net approval rate should be at least negative to -5% or more before management begins to consider responses.” Still, Chada, who had one of the more bullish outlooks towards 2025, said he was “too early to throw a towel” with his year-end goal of 7,000. He believes that stocks could bounce sharply later in the year if there is a resolution on tariff uncertainty. On Monday, the broad index rose slightly as it attempted to regain recent losses. The move comes after the latest US retail sales report showed that consumers were still spending, but it’s slower than expected. “The risks are increasing, but for now we’re maintaining our 7,000 S&P 500 target,” he said.
Deutsche Bank says there is an additional 6% in the market sale
