S&P 500 is on track for its worst weekly performance in over five years

Published 04/04/2025, 14:58
© Reuters.

Investing.com -- The U.S. stock market has witnessed another round of significant losses on Friday with the S&P 500 plummeting over 3%, pushing the weekly losses beyond 6%. This marks the most severe drop since March 2020.

At this stage, the possibility of a minor rebound remains due to the fragile investor sentiment. Both the United States 10-Year and USD/JPY showed no significant change in the early trading.

The future trajectory of the S&P 500 until the year-end will be significantly impacted by the market’s reaction to President Trump’s tariff announcements on Thursday, as per Lori Calvasina, a strategist at RBC.

Calvasina suggests that if the S&P 500 falls significantly below its mid-March low, a further decline into the 4,900-5,300 range due to a "growth scare drawdown" is probable.

This scenario would make her bearish case of 5,500, a 3% drop from Wednesday’s closing, a more suitable year-end target than her current base case of 6,200.

"We confess that we were feeling better about the ability of the S&P 500 to defend its mid-March low coming into Wednesday, only to have that glimmer of optimism dissipate again on Wednesday evening," she wrote in a note to clients today.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.