Morgan Stanley: Unless the White House or the Fed takes action, the US stock market may fall another 8%

Odaily Planet Daily News: Morgan Stanley strategists led by Mike Wilson believe that unless the White House abandons its tariff plan or the Federal Reserve sends a signal of easing, investors should be prepared for another 7%-8% drop in the S&P 500. In a report to clients earlier on Monday, they said the next support level for the index - the point where buyers will enter the market - is currently at 4,700 points. They added that at this level, valuations provide better support, and the point is close to the 200-week moving average, a long-term indicator of technical trends. Last Thursday, Morgan Stanley had used 5,100 points as a key point, but the bank updated the support level on Monday, partly because stock futures showed that the sell-off had not eased. S&P 500 futures indicate a drop of more than 3%, and Dow Jones Industrial Average futures plunged more than 1,200 points. The Trump administration showed no signs of backing down in its comments last Sunday, while Federal Reserve Chairman Powell said on Friday that the Fed would take a wait-and-see approach as the economic impact of tariffs is still unclear.