Barclays cuts S&P 500 target amid tariff concerns

In the United States, Wall Street analysts have expressed serious concerns regarding the implications of potential tariffs on the stock market and broader economic activity. On March 26, 2025, Barclays strategists reported a significant cut of more than 10% to their S&P 500 price target, lowering it from 6,600 to 5,900. This adjustment was attributed to worries that the imposition and uncertainty surrounding tariffs may lead to a material slowing of economic growth and consequently affect corporate earnings. Goldman Sachs economist Alec Phillips highlighted that risks appear skewed toward an unexpected negative reaction from markets in response to an initial tariff announcement. As President Trump has signaled that reciprocal tariffs may be announced soon, specifically on April 2, 2025, this uncertainty has led to heightened apprehensions among investors. Trump's comments suggested a potential shift towards more lenient trade policies; however, market participants remain wary about how these tariffs would ultimately impact the economy. UBS strategist Maxwell Grinacoff echoed similar sentiments in a note, voicing concerns that ongoing policy uncertainty could reignite weakness in the stock market. The fears of tariffs contributing to a broader economic deceleration have not only spooked investors but have also affected consumer confidence. Indicators such as the Conference Board's measure of consumer confidence recently dropped to the lowest level since February 2021, which reflects the growing unease about the economic outlook. Overall, many analysts are watching developments closely as the market braces for the implications of potential tariffs. Morgan Stanley strategists have pointed out that investor focus is now sharply set on the upcoming April 2 deadline, with many anticipating further details on the administration's trade policies. The evolving nature of trade discussions and tariff regulations remains a significant factor that could drive market sentiment and economic performance throughout the remainder of the year.