Morgan Stanley: Unless the White House or The Federal Reserve (FED) intervenes, the US stock market may fall another 8%.

PANews reported on April 7 that a team of strategists at Morgan Stanley, led by Mike Wilson, believes that unless the White House abandons its tariff plans or The Federal Reserve (FED) signals easing, investors should prepare for the S&P 500 index to fall another 7%-8%. In a report to clients earlier on Monday, they stated that the next support level for the index—where buyers are expected to get on board—is currently at 4700 points. They added that at this level, valuations provide better support, as this point is close to the 200-week MA, which is a long-term indicator of technical trends. Last Thursday, Morgan Stanley identified 5100 points as a key level, but updated the support level on Monday, partly due to stock futures indicating that dumping had not eased. S&P 500 futures indicate a drop of over 3%, and Dow Jones Industrial Average futures plummeted over 1200 points. The Trump administration showed no signs of backing down in comments made last Sunday, while Federal Reserve Chairman Powell stated last Friday that the Fed would take a wait-and-see approach due to the unclear economic impact of tariffs.