Experts Predict Significant Downside for S&P 500

Morgan Stanley's US chief equity strategist, Mike Wilson, predicts a downturn for US stocks, with the S&P 500 falling over 20% later this year due to an earnings recession and banking sector turmoil. Wilson expects the gauge to hit a trough of 3,000-3,300 for this cycle, representing a decline of more than 20%. JPMorgan, Citigroup, and Wells Fargo are kicking off earnings season on Friday, and analysts expect US corporate profits to post their biggest decline since the beginning of the COVID-19 pandemic in 2020.